Uber to benefit from a government takeover of Didi given its more than $5 billion stake, analyst says

9 months ago 150

Shares of Uber Technologies Inc. UBER, roseate 0.5% successful premarket trading Friday, arsenic the ride-sharing institution was acceptable to payment from a imaginable concern successful China-based rival Didi Global Inc. DIDI, +6.64% by China's government, according to Gordon Haskett expert Robert Mollins. Didi's banal jumped 4.8% up of Friday's unfastened aft Bloomberg reported that China had projected making an investment. Uber has disclosed that it owned astir $6.3 cardinal worthy of Didi's banal astatine the extremity of 2020, and said it sold $207 cardinal worthy of its concern successful January and had agreed to merchantability different $293 cardinal worthy of Didi shares successful the archetypal fractional of 2021. "If the Bloomberg nonfiction proves to beryllium true, we spot this arsenic a affirmative for Uber," Gordon Haskett's Mollins wrote successful a enactment to clients. "Uber has been precise upfront astir wanting to monetize its involvement successful Didi and we spot a transaction with Beijing arsenic a mode to merchantability a ~$5B involvement successful the institution without driving Didi's stock terms down arsenic a effect of selling connected the unfastened market." Uber's banal has dropped 15.0% implicit the past 3 months done Thursday portion the S&P 500 SPX, -0.23% has gained 8.2%.

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