Rightmove is holding firm, having rejected an unsolicited takeover bid from Rupert Murdoch’s REA Group.
REA Group expressed interest in acquiring Rightmove in August, but in a statement released on Wednesday, Rightmove’s board said the offer significantly undervalued the company.
The cash and shares bid from REA Group valued Rightmove at 698p per share, a 26% premium over its share price on August 30. As of Wednesday, Rightmove shares were trading 0.5% higher at 674p.
If a deal is eventually reached, Rightmove, the UK’s leading property portal, will join REA Group’s portfolio of similar property portals in Australia. REA Group has until September 30th to make a formal offer for Rightmove.
Rightmove stated that the offer was based on exchange rates and REA’s share price as of September 10, while REA mentioned that their figures were calculated using data from September 5.
“There is still no certainty regarding the outcome,” Jefferies analysts commented after the statements from both parties.
“It’s possible that REA’s announcement was intended to prompt Rightmove’s board to consider a revised offer. A typical scenario would involve a new offer being presented in due time.”
On Wednesday, Rightmove shares rose 0.4% to 673.6p.
