Rupert Murdoch's firm abandons £6.2bn offer for Rightmove after fourth bid rejected

REA Group, which is majority-owned by the tycoon's News Corp group, confirmed it volition not marque a steadfast connection for Rightmove, sending shares successful the FTSE 100 listed spot portal slumping by 7%

Rupert Murdoch's REA Group has called disconnected its pursuit of UK rival Rightmove aft its last takeover bid worthy £6.2bn was turned down.

The Australian company, which is majority-owned by Murdoch's News Corp group, confirmed it volition not beryllium making a steadfast connection for Rightmove, causing the FTSE 100 listed spot portal's shares to plummet by 7%. REA expressed disappointment astatine Rightmove, criticising the deficiency of engagement from the company's board, which they assertion hindered their quality to marque a bid earlier Monday's 5pm deadline.

Earlier connected Monday, Rightmove disclosed that it had rejected a 4th cash-and-shares attack from REA connected Friday, valued astatine 781p a share. Rightmove maintained that the connection was "unattractive and continues to materially undervalue Rightmove and its aboriginal prospects".

It urged REA to contiguous its "best and last proposal" earlier the deadline and dismissed the petition for an hold to extremity the uncertainty and "disruption" caused by the process. REA's main enforcement Owen Wilson stated: "Against a backdrop of intensifying planetary competition, we approached Rightmove’s committee due to the fact that we powerfully believed successful the accidental to make a globally diversified person successful the integer spot assemblage that would payment some REA and Rightmove shareholders."

He added: "We were disappointed with the constricted engagement from Rightmove that impeded our quality to marque a steadfast connection wrong the timetable available. They had thing to suffer by engaging with us. We are ever financially disciplined erstwhile we look astatine M&A (mergers and acquisitions) and reinvestment successful our business."

Last week, REA urged Rightmove's bosses to negotiate, criticising their refusal to hold to a meeting. Rightmove revealed that its chairman, Andrew Fisher, met his counterpart astatine REA, Hamish McLennan, pursuing the projected connection past Friday, with different gathering involving executives from some companies.

However, REA described the chairman-to-chairman gathering arsenic simply "introductory" and "high-level", arguing that nary further accusation was provided successful either meeting. Upon rejecting the approach, Rightmove stated earlier that "nothing was presented successful either gathering which materially changed the board’s presumption of the latest proposal".

The FTSE 100 institution refused to assistance REA entree to its books, arguing that "none of REA’s proposals received to day has been astatine a capable level to assistance specified access". "Without a compelling proposal, it would not beryllium due oregon successful the champion interests of Rightmove oregon its shareholders to supply confidential and commercially delicate accusation to REA," it added.

After consulting with its shareholders, the determination to cull the 4th connection was made. "The committee has concluded that shareholder interests would beryllium amended served done the execution of Rightmove’s standalone strategical plan," the steadfast said.

REA had asked for much clip past the September 30 deadline to contemplate a caller takeover offer, but Rightmove stood steadfast connected the cut-off, arguing it was enactment successful spot to debar undue limbo for the companies involved. Before REA decided to backmost off, Rightmove's president Mr Fisher expressed vexation astatine the turmoil caused, insisting: "The past fewer weeks person been precise disruptive, arsenic good arsenic unsettling for our colleagues."

"To the grade REA wants to enactment guardant a further proposal, I impulse them to taxable a champion and last connection up of today’s 5pm Pusu deadline specified that we tin bring certainty to this process."

Rightmove is the UK’s largest online existent property portal, portion REA is Australia’s largest spot website. Starting from a Melbourne store successful 1995, REA has seen its marque thrive successful Australia and beyond, marking its beingness successful India and Southeast Asia. Listed astatine astir 27 cardinal Australian dollars (£13.9 billion) connected the Australian banal market, REA boasts a workforce of astir 3,400 employees.