Rightmove shares rise after it rejected Investing.com’s takeover bid for REA

Investing.com — Shares of Movement to the right plc (LON: ) rose on Monday after the company rejected an enhanced takeover offer from Australian property listings giant REA Group.

Rightmove shares were up 2.8% at 4:37am ET (0837 GMT) at £693.

REA, which is majority-owned by Mr Murdoch’s News Corporation, made its latest bid on September 22, valuing Rightmove at 770 pence a share, up from its previous proposals of 705 pence and 749 pence, putting the global valuation of Rightmove at around £6.1. billion.

The offer included 341 pence in cash plus 0.0422 new REA shares per Rightmove share.

Despite a 9.2% increase on the original offer and a 39% premium to Rightmove’s share price of 556p on August 30, Rightmove’s board rejected the proposal, citing concerns that it was “fundamentally undervalued” the company.

This marked the third offer that Rightmove has turned down, calling REA’s approach “opportunistic”.

REA, known for its strong growth track record, said the combination will create a global leader in digital real estate, delivering shareholder value and enhancing the real estate experience for agents and consumers.