Australian Real Estate Advertiser Faces Setback in Merger Attempt

  • Rightmove rejects third bid from REA Group
  • REA Group’s latest offer valued each Rightmove share at 761 pence
  • REA’s share price has fallen by around 12% since August 30
  • REA urges Rightmove shareholders to engage in talks before September 30 deadline

Rightmove has rejected a third bid from News Corp.-controlled Australian real-estate advertiser REA Group, stating that the latest offer still undervalues the company and its future prospects. The latest bid was worth £6 billion ($8.05 billion) and comprised 341 pence in cash and 0.0422 new REA shares for each Rightmove share. REA Group, which is controlled by News Corp (publisher of Dow Jones Newswires and The Wall Street Journal), expressed disappointment and frustration at not being able to have substantive talks with Rightmove. Since the announcement of REA’s interest in the company on August 30, Rightmove has noted a 12% drop in REA’s share price. REA Group urges Rightmove shareholders to encourage the board to engage in talks before the September 30 deadline.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Rightmove rejecting a third bid from News Corp.-controlled REA Group and includes relevant details about the value of the offer and REA’s response to the rejection. It also mentions the background context of REA’s interest in combining two dominant real-estate listing websites, but does not include any unnecessary digressions or personal opinions.
Noise Level: 5
Noise Justification: The article provides some relevant information about a business transaction but lacks in-depth analysis or contextualization of the event, as well as any exploration of potential consequences for stakeholders. It also does not offer actionable insights or new knowledge.
Public Companies: Rightmove (RMV), REA Group (REA), News Corp (NWS)
Key People: Dominic Chopping (Writer)

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Financial Relevance: Yes
Financial Markets Impacted: Rightmove and REA Group shares
Financial Rating Justification: The article discusses a takeover bid for Rightmove by News Corp.-controlled REA Group, which impacts the value of their respective stocks in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text and it did not happen in the last 48 hours.
Deal Size: 8050000000
Move Size: 12%
Sector: Technology
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Reported publicly: www.wsj.com www.marketwatch.com