Rightmove Rejects Third Bid From REA Group

By Dominic Chopping

Rightmove rejected a third bid from News Corp.-controlled REA Group, saying the latest offer still materially undervalues the company and its future prospects.

Australian real-estate advertiser REA launched its latest bid earlier this week as it perseveres in its attempt to combine two of the English-speaking world's dominant real-estate listing websites.

The latest bid was worth 6 billion pounds ($8.05 billion) and comprised 341 pence in cash and 0.0422 new REA shares for each Rightmove share, which based on REA's closing share price on Monday had valued each Rightmove share at 761 pence.

That followed previous proposals worth 749 pence and 705 pence a share earlier this month.

In its rejection Wednesday, Rightmove noted a drop in REA's share price had reduced the value of the offer. Since Aug. 30--the last day before news of REA's interest in the company was announced--Rightmove said REA's share price has fallen by around 12%.

REA said it was disappointed with the rejection and frustrated that it hasn't been able to have substantive talks with Rightmove.

"REA continues to firmly believe that the further improved proposal represents a highly compelling proposition for Rightmove's shareholders at a significant premium," it said.

The Australian company said it urges Rightmove shareholders to encourage the board to engage in talks and work toward a recommended transaction ahead of a Sept. 30 deadline.

REA Group is controlled by News Corp, which owns Dow Jones & Co., the publisher of Dow Jones Newswires and The Wall Street Journal.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

September 25, 2024 02:51 ET (06:51 GMT)

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