Rightmove rejects the fourth REA bid as the final deadline approaches
- REA Group has until Monday 5 p.m. to make a final offer or walk away
- Rightmove has rejected requests for additional time and due diligence information
Rightmove shares fell on Monday after the British real estate website rejected a fourth takeover bid from Australia’s REA Group.
The FTSE 100 group told shareholders that the latest offer, which was worth around £6.15 billion in total, was ‘unattractive’ and ‘materially undervalued’ Rightmove and its prospects.
Rightmove also revealed it had rejected REA requests for an extension of the ‘put up or shup up’ deadline, meaning the Australian company has until 5pm today to make a final takeover attempt – or be shut down to see it closed for his efforts.
Murdoch-backed REA Group has until 5pm to make a final offer for Rightmove or walk away
The latest offer included 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 percent.
REA, which is 62 percent owned by the Murdoch family’s News Corp, says a takeover of Rightmove would “seek to improve the UK property experience for buyers, sellers and tenants”, supporting Rightmove’s vision “to bring faith to everyone.” that they can create their own real estate’. movement’.
But Rightmove chairman Andrew Fisher said on Monday the board is “confident in the self-sustaining future” of the group, amid “very significant opportunities for future growth”.
The company told shareholders that REA requests for further due diligence information and an extension of the bid deadline would not be in Rightmove’s best interests.
Fisher added: “The last few weeks have been deeply disruptive, but also worrying for our colleagues.
“To the extent that REA wishes to submit another proposal, I urge them to submit a best and final proposal before today’s PUSU deadline, 5 p.m., so that we can provide certainty in this process.”
Rightmove shares fell 2.4 percent to 652.4p in early trading on Monday. Takeover speculation has sent them up 17.4 percent since the beginning of September.
REA has yet to respond to the latest rejection of the offer.
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