January 10, 2020 / 12:38 AM / a month ago

Grubhub denies reports of sale, shares drop

(Reuters) - Grubhub Inc (GRUB.N) said on Thursday there is no sale process, denying reports that the online food delivery company was considering strategic options that include a possible sale or an acquisition, sending its shares down 6.7% in extended trading.

“We felt it was important to clarify that there is unequivocally no process in place to sell the company and there are currently no plans to do so,” a Grubhub spokesperson said, in am emailed statement to Reuters.

The New York Post reported bit.ly/37IpXLQ earlier Thursday that executives from Walmart and at least three other grocers have considered acquiring Grubhub, while a Wall Street Journal report here said the Chicago-based company has tapped financial advisers to help with the review.

“We have always consulted advisers about a broad range of issues, including potential acquisition opportunities - that has not changed,” Grubhub spokesperson added.

Competition has intensified in the food-delivery industry with Uber Technologies Inc’s (UBER.N) UberEats, which has grown into a national competitor, and startups such as DoorDash and Postmates.

Reporting by Shanti S Nair in Bengaluru, Editing by Sherry Jacob-Phillips

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