Rightmove (LSE: RMV) is holding its ground as REA Group criticises the UK firm for rejecting its recent bid proposal. On Wednesday, REA lamented what it termed Rightmove’s “lack of engagement” following the rejection of an increased offer made on Monday.
The online property portal stated that the new bid “continues to be unattractive and materially undervalues the company and its future prospects.” Rightmove, in turn, unanimously dismissed the proposal on Tuesday.
REA, which is predominantly owned by Rupert Murdoch’s News Corp, has made a renewed attempt to acquire Rightmove, having previously approached the company earlier this month. The latest bid values Rightmove’s equity at £6.1 billion, comprising 341 pence in cash and 0.0422 of a new REA share. Based on REA’s closing price from the previous Friday, this equates to a valuation of 770p per Rightmove share.
Earlier this month, REA had hinted at a cash and shares bid valued at 705p per share, which Rightmove dismissed as “wholly opportunistic.” Following a subsequent attempt on September 16 at a price of 749p per share, REA expressed disappointment over Rightmove’s latest rejection and voiced frustration over the lack of meaningful dialogue.
Despite the setbacks, REA remains convinced that its proposal is a “highly compelling” opportunity for Rightmove shareholders. The Australian firm is urging Rightmove’s shareholders to push the board towards constructive discussions ahead of the looming September 30 deadline.
Rightmove shares were down 1% on Wednesday morning in London.
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