AUS
NZ
UK
CA
USA
IND
Rightmove PLC (LSE:RMV) recently turned down a £5.6 billion bid from Rupert Murdoch’s REA Group, although analysts noted that the offer exceeded expectations.
Jefferies brokers reported that the bid, disclosed by REA on Wednesday, valued Rightmove shares at 705p each. This offer included a cash component of 305p per share combined with 0.0381 new REA shares. This was notably higher than the 230p in cash per share that Jefferies had anticipated.
In its response, Rightmove described the offer as “wholly opportunistic and fundamentally undervalued,” and promptly rejected it. According to Rightmove, the proposed offer valued the company at 698p per share, which represented a 26% premium over its closing price on August 30, the day before REA’s interest became public.
Rightmove also highlighted discrepancies in the valuation details, noting that the offer reflected exchange rates and REA’s share price as of September 10, while REA’s figures were based on data from September 5.
Jefferies analysts commented on the situation, suggesting that the announcement by REA might be a strategy to prompt Rightmove’s board to accept a revised offer. They indicated that it is common for revised proposals to follow initial rejections.
Following the news, Rightmove shares saw a slight increase, rising 0.4% to 673.6p on Wednesday. This movement reflects market reaction to the updated bid and ongoing negotiations.
