Rightmove rejects THIRD Murdoch offer – analysts warn ‘frustrated’ Australians could turn hostile

The battle for Rightmove is becoming increasingly toxic after the property website rejected a third takeover bid from a rival backed by Rupert Murdoch.

The FTSE 100 firm has described the 770 pence-a-share offer from Australian firm Rea Group, which values ​​the website at 6.1 billion pounds, as “unattractive” and said it “substantially undervalues” the business.

The rejection prompted a furious response from Rea, which is 61 percent owned by Murdoch’s News Corp.

The Melbourne-based firm has criticised Rightmove’s board and urged the UK company’s shareholders to put pressure on directors to enter into talks.

Rea chief executive Owen Wilson said it was “incredibly disappointing” that Rightmove did not want to be involved.

Rightmove has rejected three offers from Rea, the first two valued at £5.6bn and £5.9bn.

Analysts said Rea could attempt a hostile takeover, meaning it would bypass the board and deal directly with shareholders in an attempt to seize control.

The Mail understands the Australian company wants to reach an agreement rather than attempt a hostile takeover.

Reacting to Rea’s latest offer, a statement from Rightmove said: “The increased proposal remains unattractive and substantially undervalues ​​the company and its future prospects.”

The battle for Rightmove comes at a time when the UK property market is showing signs of recovery after a period of weaker demand caused by high mortgage costs.

The recovery is expected to boost Rightmove’s shares and profits. Rea said he was “disappointed by the latest rejection” and frustrated that there had been “no substantial engagement with Rightmove”.

“I was very hopeful that we would engage with them at this stage,” Wilson told the Financial Times.

The company has held talks with Rightmove’s major shareholders to get bosses to the negotiating table.

“Rea urges Rightmove shareholders to encourage the Rightmove board to engage in constructive discussions with Rea to work towards a recommended transaction,” the Australian firm said.

Analysts at Jefferies said Rea’s call to investors could be “a last-ditch attempt” to get Rightmove to commit to him before a September 30 deadline under the City’s code on takeovers and mergers.

Russ Mould, investment director at AJ Bell, said: “Rea appears to be losing patience with Rightmove after it rejected a third takeover proposal, further insisting that it is rude not to engage in a proper conversation.”

He added: “This sets the tone for Rea to take a hostile approach, bypassing the board and dealing directly with shareholders. Rightmove’s biggest investors are asset management companies and they will all be priced at which they would be happy to let their shares go.”

‘They are holding shares in Rightmove to make money and it is clear that Rea still wants the business.’

Analysts at Panmure Liberum said they thought Rea’s “toughening of language” suggested he “will likely choose to approach shareholders rather than the Rightmove board at this stage, if he has not done so already”.

But analysts added: “We do not think this will change much and we continue to believe that a deal is unlikely.”