Ocado shares spike over 40% on report Amazon may bid

Ocado Group (LON:) (OTC:) shares surged as much as 43% in London on Thursday amid market rumors that the company is being eyed up by Amazon (NASDAQ:).

A report in The Times noted that Amazon could place an 800p-a-share takeover bid with investment banks JP Morgan and Goldman Sachs acting on behalf of the bidder.

Such a price would value Ocado at £6.6 billion ($7.67B). Today’s surge pushed the company’s market cap to £4.9B.

The report also noted that “more than one American suitor “ is looking at the embattled retailer.

A spokesperson for Amazon declined to comment on market rumors, according to Reuters.

Shares in Ocado fell over 88% from February 2021 to early June 2023, when the stock hit the lowest levels since December 2017.