A long moan from News Corp, or was it REA (ASX:REA), late Wednesday about the iniquities of UK property listings group, Rightmove, telling REA (and News) to go away for the third time.
Rightmove again called the offer “unattractive and materially undervaluing Rightmove.”
On Monday, REA confirmed it had made a slightly improved offer for Rightmove, valuing it at 770 pence per share, or £6.1 billion, close to A$12 billion.
The offer comprises 341 pence in cash and 0.0422 of a new REA share. Based on REA's closing price on Friday, the bid values each Rightmove share at 770p. REA shares have fallen 4% since Friday’s close, which REA’s statement failed to note.
Rightmove’s value is around £5.4 billion, with the offer now worth around £6 billion.
REA’s first indicative offer was pitched at 705p per share, then 749p, and now 770p.
Rightmove indicated on Monday that it would consider the new (770p) offer, but a day later, it was yet another version of ‘go away.’
In yesterday’s release, REA stated it was “disappointed” by the rejection and “frustrated” by the lack of any “substantive engagement” from Rightmove.
REA made the usual paper threats, such as saying the bid value might be reduced if Rightmove makes any return or distribution to shareholders other than the already declared interim dividend of 3.7 pence per share announced on July 26.
REA’s 'put up or shut up' deadline is September 30 for a formal takeover offer.
