REA Group makes an initial takeover bid for UK real estate giant Rightmove, reports Bloomberg News By Reuters

(Reuters) – Rupert Murdoch-owned real estate listings firm REA Group has made an initial takeover bid for Britain’s Rightmove ( OTC: ), Bloomberg News reported on Tuesday, citing people familiar with the matter.

News Corp-backed REA Group last week announced its interest in buying Rightmove to create a global property company. Rightmove’s current market capitalization is approximately $6.92 billion, making it the largest property portal in the UK.

According to the report, REA submitted an initial proposal valuing Rightmove at around 700 pence per share. The offer would represent a 26% premium to the August 30 closing price.

Discussions are ongoing and there is no certainty that a deal will result, the report added.

Rightmove declined to comment, while REA did not immediately respond to a Reuters request for comment.

REA now has until September 30 to make a formal offer for Rightmove under UK takeover rules.