GrubHub stock gains after report of narrowed price gap in Uber takeover talks

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GrubHub Inc. shares [S: GRUB] are up 8% in Friday trading after a Bloomberg News report indicated that the company has narrowed the price gap in its deal talks with Uber Technologies Inc. and that the two companies are now “haggling” over a breakup fee. GrubHub wants to receive a cash sum if the deal is blocked for regulatory reasons, while Uber “is reluctant to concede to any sizable payment,” according to the report, which cites multiple unnamed sources. A Rhode Island congressman called a possible merger between Uber and GrubHub “a new low in pandemic profiteering” after the deal talks were reported earlier in March. The proposed deal price would value GrubHub at a premium over Thursday’s closing price of $52.83, the Bloomberg report said. Representatives from Uber and GrubHub didn’t immediately respond to MarketWatch’s request for comment. GrubHub shares have added 20% over the past month, as Uber’s stock has gained 13%. The S&P 500 is up 3.4% in that span. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.