Rightmove has rejected a £6.2bn takeover offer from Rea Group, the Australian real estate firm backed by Rupert Murdoch’s News Corp.
The UK property portal told the City on Monday morning that its board had turned down Rea’s fourth offer.
The offer values each Rightmove share at 780p, and the entire company, which is listed on the FTSE 100 share index, at about £6.2bn. Rea made the proposal on Friday, after Rightmove had rebuffed its previous offers for being “unattractive” and undervaluing the company.
Under City rules, REA has until 5pm on Monday 30 September to make a firm offer or walk away.
Rea has criticised Rightmove’s board for failing to engage with its offers.
In 2001, Rupert Murdoch’s son Lachlan took control of REA, buying a 44% stake in the struggling Australian property company for A$2m (£1.3m). Since the Murdochs sold some of their media crown jewels and Rupert retired from leadership of the rest last year, the property company has taken on greater importance for News Corp.
The investment is seen as one of Lachlan’s key contributions to the family’s wealth.
More details to follow …