In a significant development in the UK property market, Rightmove has rejected a third unsolicited bid from REA Group, this time valued at £6.1 billion (approximately US$8.2 billion), as announced on September 25, 2024. The latest offer, which amounted to 770 pence per share, was above Rightmove's current trading price of 685 pence. However, the board of Rightmove deemed the proposal unattractive and felt it undervalued the company [31c0ee78].
This rejection follows REA Group's initial bid of £5.6 billion, highlighting the ongoing negotiations and the competitive landscape in the property sector. REA Group has until 1600 GMT on the following Monday to either announce a firm intention to proceed with the bid or withdraw entirely. The company expressed disappointment and frustration over what it perceives as a lack of engagement from Rightmove's management [31c0ee78].
Analysts have noted that Rightmove may have significant growth potential, particularly in light of UK government plans to construct 1.5 million new homes and the possibility of interest rate cuts, which could stimulate the housing market. This context adds complexity to the ongoing bid, as Rightmove's leadership weighs the immediate financial offer against the backdrop of potential future gains [31c0ee78].
Meanwhile, REA Group's bid comes at a challenging time for its chairman, Rupert Murdoch, who is currently facing legal challenges regarding control over his family trust, which may impact the strategic direction of the company [31c0ee78].