After Rightmove PLC (LSE:RMV) this morning revealed it had rejected a third bid from Rupert Murdoch's REA Group, the frustrated Australian rival is now expected to mount a hostile takeover if it really wants to seal the deal.
REA expressed "disappointment" at the rejection of its third offer, said it is "frustrated" at the lack of substantive engagement, and reiterated that it believes that the latest is a "highly compelling proposition" for Rightmove shareholders, and at a significant premium to peers.
In its statement today, REA appealed directly to shareholders to engage with the Rightmove board.
"We think this might be a last throw of the dice by REA," said analyst Giles Thorne at Jefferies.
But others expect REA to go hostile.
Panmure Liberum's Sean Kealy said the rejection was "not a huge surprise" as the third offer was an improvement of just 21p over the second offer and given the move in REA's shares, is now worth just 759p a share.
"The ball is now back in REA's court, and we expect that the next step in this process will be for REA to take a more hostile approach - if it isn't already directly approaching shareholders," said Kealy.
"We continue to believe the offer will have to substantially improve from here for a successful deal to take place - and that REA Group, in the absence of any creative solutions from the Murdochs, will struggle to table a significantly improved offer."
Russ Mould at AJ Bell said today's statement from the Aussie company "sets the tone for REA taking a hostile approach, bypassing the board and negotiating directly with shareholders".
Looking at Rightmove’s major shareholders list shows these are led by institutions: Kayne Anderson Rudnick Investment Management (10.8%), Lindsell Train (7%), Generation Investment Management (5.7%), BlackRock Investment Management (4.3%), Baillie Gifford (4%), Vanguard (3.8%).
These investors "will all have a price at which they’d be happy to let their shares go", said Mould, and they "won’t be emotionally attached to a business like Rightmove in the way a founder or company employee might be".