News Corporation's (NASDAQ:NWSA) subsidiary, REA Group, has encountered another setback in its attempt to acquire Rightmove as the board of directors of Rightmove has once again rejected REA's revised non-binding proposal.
The latest offer valued each Rightmove share at 770 pence, which the Rightmove board described as "unattractive" and a "material undervaluation" of the company.
This marks the fourth rejection of REA's proposals by Rightmove, with no substantial discussions taking place between the two entities thus far.
REA expressed its disappointment and frustration over the lack of engagement from Rightmove's board, emphasizing that the revised proposal represents a "highly compelling proposition" for Rightmove’s shareholders.
The offer not only promised a significant premium over the current trading metrics but also included an opportunity for shareholders to participate in the future growth of the combined entity.
REA is urging Rightmove's shareholders to push the company's board for constructive negotiations ahead of the impending 30 September 2024 deadline, as stipulated under Rule 2.6(a) of the Code.
REA reaffirmed its readiness to engage immediately with Rightmove’s board to work towards a mutually beneficial agreement.