Property platform Rightmove has rejected a £5.6bn bid from an Australian rival controlled by Rupert Murdoch, writes Jessica Clark.
The board of the home listings website said Melbourne-based Rea‘s offer “undervalued” the company.
The proposal valued Rightmove’s shares at 705p each. Rea also said it intended to seek a secondary listing on the London stock market to allow UK investors to trade shares in the combined company. But analysts said a bid of nearer £6bn was needed to get a deal.
Rightmove’s shares were yesterday trading below the offer price, suggesting investors are not convinced Rea will make a fresh approach.
The interest comes as the UK’s housing market shows signs of recovery, which could help Rightmove’s shares rally.
The stock has tumbled around 14% after hitting a peak of 789p in 2021. Interest rates have been cut from a 16-year high of 5.25%, with further reductions expected this year.
House prices …