Morgan Stanley Advised Uber on Derivatives for 20% Delivery Hero Stake
MS•Morgan Stanley structured derivatives enabling Uber to accumulate roughly 20% stake in Delivery Hero, including 5.6% via options. These transactions underpin Uber’s proposed €33 per share takeover bid and could generate significant advisory and trading fee revenue for Morgan Stanley.
1. Morgan Stanley's Derivatives Role
Morgan Stanley worked with Uber to design and execute derivative structures that allowed the ride-hailing firm to rapidly build a nearly 20% stake in Delivery Hero. The bank’s solutions included options accounting for 5.6% of the position, helping Uber to amass its holding without immediately triggering a mandatory bid under German law.
2. Uber's Takeover Proposal
Uber proposed a €33 per share offer for Delivery Hero as part of its strategy to challenge competitors outside the US. The indicative price sits about 1.8% below the target’s recent closing level, and several investors have signaled they would seek at least €40 per share.
3. Advisory Revenue Impact
By advising on these high-profile transactions, Morgan Stanley stands to earn substantial advisory and trading fees. The deal underscores MS’s role in major cross-border M&A and could bolster its standing in the derivatives and corporate finance markets.
