Murdoch-backed REA Group calls time on Rightmove takeover pursuit
- REA Group has until 5pm on Monday to make a final bid or walk away
- Rightmove rejected requests for extra time and due diligence information
REA Group has confirmed it will make no more takeover offers for Rightmove after the property website rejected a fourth bid from the Australian firm.
Rightmove on Monday rejected a sweetened offer worth £6.15billion on the grounds it continued to ‘materially undervalue’ the group and its prospects.
REA later in the day confirmed it would not be making another bid prior to today’s 5pm deadline after Rightmove refused to give the group more time and due diligence information to inform a higher offer.
Murdoch-backed REA Group has until 5pm to make a final bid for Rightmove or walk away
Chief executive of REA, which is 62 per cent owned by the Murdoch family’s News Corp, Owen Wilson said: ‘Against a backdrop of intensifying global competition, we approached Rightmove’s Board because we strongly believed in the opportunity to create a globally diversified leader in the digital property sector that would benefit both REA and Rightmove shareholders.
‘We were disappointed with the limited engagement from Rightmove that impeded our ability to make a firm offer within the timetable available. They had nothing to lose by engaging with us.
‘We are always financially disciplined when we look at M&A and reinvestment in our business and will continue to focus on the many other opportunities ahead of us.’
Rightmove shares were down 6.9 per cent to 622.2p by midafternoon on Monday. Takeover speculation has helped propel them 11.9 per cent higher since the start of September.
Rightmove rejects fourth and final bid
The latest bid comprised 346p in cash, 0.0471 REA shares and a special cash dividend of 6p per Rightmove share, marking an increase on the third offer of around 3 per cent.
REA said a takeover of Rightmove ‘would look to enhance the UK property experience for buyers, sellers and renters’, supporting Rightmove’s vision ‘to give everyone the belief they can make their move’.
But Rightmove chair Andrew Fisher said on Monday the board is ‘confident in the standalone future’ of the group, amid ‘very significant opportunities for future growth’.
The firm told shareholders that REA requests for further due diligence information and an extension to the bid deadline would not be in Rightmove’s best interests.
Fisher added: ‘The last few weeks have been very disruptive, as well as unsettling for our colleagues.’
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