Rightmove PLC (LSE:RMV) has rejected the third offer from Rupert Murdoch's REA Group, saying it "continues to be unattractive and materially undervalues the company and its future prospects".
Made up of 341p in cash and 0.0422 new REA shares per Rightmove share, the latest bid from the Australian property portal owner implied an offer value of 759p, Rightmove pointed out. REA said the offer implied a total value of 770p.
The value of REA's offer has been affected by its share price falling substantially, with the closing price last night of $189.99 down more than 13% from the 30 August date before the offer period began.
Rightmove said its board considered the new bid with its financial advisers, and it was unanimously rejected.
REA, which was felt to have adopted a firmer tone in its latest offer, has a put-up-or-shut-up deadline of 5pm on 30 September to make a firm bid or walk away.
Analysts said this week they believe a rejection from Rightmove could push REA towards a hostile bid, but in a separate statement, the Australian company again said it was "disappointed by the latest rejection" and is "frustrated" that there has been no engagement with the UK company.
It urged Rightmove shareholders "to encourage the board ...to engage in constructive discussions with REA to work towards a recommended transaction" ahead of the deadline.
As for whether it is prepared to go much higher with a bid, REA said it is "committed to its capital allocation framework and maintains a disciplined approach to mergers and acquisitions", with "no certainty that an offer to Rightmove shareholders will be made by REA or that any transaction will proceed".
** Update: Adds REA response **