The stock of British food delivery firm Deliveroo soars after the acquisition offer from DoorDash

Takeaways from the Key Takeaways

• Shares of Deliveroo soared in London trading Monday after the British food delivery firm said it had received an "indicative proposal" from DoorDash to be acquired for 180 pence ($2.40) a share, or roughly 2.72 billion pounds ($3.63 billion).
• Deliveroo said it received the proposal on April 5 and that its board indicated to the U.S. company that "should a firm offer be made" at those terms, it "would be minded to recommend such an offer to Deliveroo shareholders." 
• DoorDash has until 5 p.m. London time May 23 to "announce a firm intention to make an offer." 

Shares of Deliveroo soared in London trading Monday after the British food delivery firm said it had received an “indicative proposal” from DoorDash (DASH) to be acquired for 180 pence ($2.40) a share, or roughly 2.72 billion pounds ($3.63 billion).

Deliveroo’s shares in London surged by 17%, to 171.9p. Shares of DoorDash, which has until 5 p.m. London time May 23 to "announce a firm intention to make an offer," are little changed in premarket trading.

Deliveroo said it received the proposal on April 5 and that its board indicated to the U.S. company that "should a firm offer be made" at those terms, it "would be minded to recommend such an offer to Deliveroo shareholders."

Citi analysts on Monday affirmed their "buy" rating on DoorDash stock after the proposed takeover of Deliveroo, saying that the U.K. firm "meets several of DASH's M&A criteria," including expanding its geographic reach as well as total addressable market. They said the U.S. business would need more time to grow organically, while still generating long-term free money flow.

Deliveroo was founded in 2013 in London and operates in nine markets including France, Ireland and Singapore.