Purplebricks Group PLC (AIM:PURP) shares fell another 25% on Thursday, extending its all-time low and the decline over the past year to more than 92%, after a potential buyer pulled out of a full sale but said it was in talks about buying the operating business, brand and other assets.
Fellow online estate agent Strike issued a statement after market close on Wednesday saying it "is not intending to make an offer".
It reserved the right to make a U-turn either with the agreement of the board of Purplebricks, if a third party announces a firm intention to make an offer for Purplebricks, if Purplebricks announces a Rule 9 waiver proposal or a reverse takeover , or if there is some other material change of circumstances.
However Strike said it remained in discussions with the rival board regarding "a possible purchase of the business and assets", a transaction normally restricted under takeover rules.
Purplebricks said it agreed to set the restrictions aside for the purpose such an acquisition, which would also be subject to the shareholder agreement and due diligence.
Purplebricks has granted Strike a short period of exclusivity to negotiate the deal.