British property website Rightmove has rejected a third unsolicited proposal from Australian peer REA Group worth £6.1 billion, owned by Rupert Murdoch’s News Corp empire. Rightmove stated that the increased proposal undervalues the company and its future prospects.
REA Group, which first expressed interest on September 2, noted similarities in leading market positions with Rightmove. Under British takeover rules, REA has until Monday to make a firm offer or withdraw. REA expressed disappointment at the rejection and believes the proposal is compelling for Rightmove shareholders.
The latest bid was 770 pence per share, significantly higher than Rightmove’s share price in early trading. Sector analysts believe REA’s interest could be driven by anticipated interest-rate cuts in the UK and government plans for mass housebuilding, creating growth opportunities for Rightmove.
If successful, REA intends to obtain a secondary listing in London. This takeover bid arises amidst legal disputes within Murdoch’s family over control of his media assets post his death.
Despite the attractive offers, Rightmove remains steadfast in its decision to decline the bids, emphasizing its value and potential growth in the UK property market.
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