Australia’s REA Group has increased its bid to acquire UK housing portal Rightmove to £6.1bn after being rejected twice. The offer, valued at 770p per Rightmove share, includes cash and REA shares. REA’s CEO Owen Wilson believes the deal will enhance the property market experience for agents, buyers, and sellers. Despite being majority-owned by Rupert Murdoch’s News Corp, REA has faced resistance from Rightmove’s board, who feel the offers undervalue the company.
The market is waiting to see how Rightmove will respond to this third offer, as their shares closed at 674p before news of the increased bid. Surveys of purchasing managers in major economies and a speech by chancellor Rachel Reeves are also on the agenda today.
In other news, spending on health and beauty products is rising despite cost-of-living pressures, driven in part by social media influence. On the flip side, smart sensing software company Oxford Metrics has cautioned shareholders about extended buying cycles and delayed purchasing decisions.
REA’s revised offer for Rightmove has caused their shares to drop by 2.1% on the Australian stock market. The company disputes Rightmove’s claim that their approach is “wholly opportunistic”, arguing that Rightmove’s shares have shown lackluster performance in the past two years. This increased offer of £6.1bn is a third attempt by REA to acquire Rightmove, hoping to finally engage the board in discussions.
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