Rupert Murdoch’s REA group has fired a bitter parting shot at the board of Rightmove PLC (LSE:RMV) after dropping its takeover approach following the rejection of a fourth offer for the online estate agent.
In a statement, REA said the proposed combination would have provided Rightmove shareholders the opportunity to meaningfully participate in a fast-growing, diversified, global leader while "receiving value certainty in an operating environment challenged by increased market competition".
The fourth proposal, at an implied offer price of 775p per share plus a special dividend of 6p per share, together represented a 45% premium to Rightmove's 12-month and 24-month volume weighted average share prices, it added.
READ: Rightmove plays hardball with Murdoch's REA
REA said the potential acquisition of Rightmove was dependent on agreeing on a fair price, which would have required meaningful engagement and a constructive dialogue.
An introductory high-level Chairman-to-Chairman meeting took place on 28 September 2024 after which, at REA’s request, an additional meeting was held on 29 September 2024 “where no presentation or any other information was given by Rightmove,” said the Aussie group...
REA added that it firmly believed it would have been in the interests of Rightmove shareholders to engage with REA and extend the 30 September 2024 bid deadline to determine whether a mutually acceptable proposal could have been reached
Owen Wilson, REA’s chief executive, commented: “We were disappointed with the limited engagement from Rightmove that impeded our ability to make a firm offer within the timetable available. They had nothing to lose by engaging with us.
"We are always financially disciplined when we look at M&A and reinvestment in our business and will continue to focus on the many other opportunities ahead of us.”