AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
-Copy_09_25_2024_12_39_25_095371.jpg)
Highlights
- Third Bid Rejected: Rightmove PLC has turned down a third acquisition proposal from Rupert Murdoch's REA Group, citing insufficient engagement and value.
- REA's Frustration: The Australian rival expressed disappointment at the rejection and hinted at pursuing a hostile takeover if necessary, emphasizing the compelling nature of its offer for Rightmove shareholders.
- Investor Dynamics: Major institutional shareholders of Rightmove may be open to negotiations, as they are likely to have specific price points in mind for their shares.
Description
Rightmove PLC (LSE:RMV) has officially rejected a third bid from REA Group, owned by Rupert Murdoch, which has prompted discussions about a potential hostile takeover. Following the rejection, REA expressed disappointment and frustration, indicating that it believes its offer represents a significant premium for Rightmove shareholders compared to industry peers. The company has urged these shareholders to engage directly with the Rightmove board.
Commentators suggest that REA's continued efforts could signal a last-ditch attempt to secure a deal, with some predicting that a more aggressive approach may be on the horizon. According to Sean Kealy from Panmure Liberum, the rejection of the latest bid, which offered only a modest increase over previous proposals, was expected. He noted that the decision now rests with REA, which may need to pursue a more direct strategy if it hopes to convince Rightmove's shareholders.
Russ Mould from AJ Bell echoed this sentiment, highlighting that REA's recent statement could pave the way for a hostile approach, potentially bypassing Rightmove's board and negotiating directly with shareholders instead. An examination of Rightmove's major shareholders reveals that institutional investors dominate, with firms like Kayne Anderson Rudnick Investment Management and Lindsell Train holding significant stakes. These investors are likely motivated by financial considerations rather than emotional ties, which could influence their receptiveness to REA's overtures.
As the situation develops, the dynamics between REA Group and Rightmove will be crucial. The outcome may depend on REA’s ability to formulate a more attractive offer and engage effectively with shareholders who might be amenable to change.
