Rightmove Rejects Third REA Group Takeover Proposal

Property website giant Rightmove (LON: RMV) has once again rejected a takeover proposal from Australian real estate group REA Group.

It marks the third time in recent months that REA has made an unsuccessful attempt to acquire Rightmove.

On Monday, Rightmove's share price gapped up, climbing above the 700p mark after REA sweetened its offer for the UK firm, valuing it at approximately £6.1 billion. The proposal consisted of a combination of cash (341p per share) and REA shares (0.0422 new shares for each Rightmove share).

In a statement released on Wednesday, Rightmove's board of directors said that the latest offer from REA was “unattractive and materially undervalues the company and its future prospects.”

The offer, which included a combination of cash and shares, was valued at 759 pence per Rightmove share.

REA has been pursuing Rightmove, believing that a combination of the two companies would create a dominant force in the global property market.

However, Rightmove has consistently rejected these advances, insisting that it is already a strong and successful business.

The latest rejection comes as a blow to REA, which has seen its share price decline by around 12% since the start of the takeover attempt.

It remains to be seen whether REA will make another attempt to acquire Rightmove or whether it will abandon its pursuit of the British property giant.

In a statement following the Rightmove statement, REA said it “is disappointed by the latest rejection from the Board of Directors of Rightmove and is frustrated that, save for the rejection of REA's three previously disclosed proposals, REA has still had no substantive engagement with Rightmove.”

REA added that it urges Rightmove shareholders to encourage the Board of Directors of Rightmove to engage in constructive discussions with REA.

Rightmove shares closed Tuesday's session up 0.5% at 683p a share.