(Times of Update) — Rightmove Plc, the U.K.’s largest real estate portal by market share, is working with UBS Group AG and Morgan Stanley on its response to unsolicited takeover interest from Australia’s REA Group Ltd., people familiar with the matter said.
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Rightmove is in talks with banks about its next steps after REA Group, a subsidiary of Rupert Murdoch’s sprawling empire, said it was considering a possible cash and share offer for the London-listed company, the sources said. The British company said on Monday it had not yet received an approach from REA and asked shareholders not to take any action, without naming its advisers.
REA had previously revealed that it was working with Deutsche Bank AG. The German bank traditionally acts as Rightmove’s corporate broker, but now finds itself in a conflict of interest.
Shares in Rightmove soared 27% in London on Monday, the biggest daily gain on record, taking its market value to £5.6 billion ($7.3 billion). REA fell 5.3% in Sydney, the biggest drop since December 2022, giving it a market value of A$27.4 billion ($18.6 billion).
Representatives for Rightmove, UBS and Morgan Stanley declined to comment. Under the UK Takeover Code, REA has until 5pm on 30 September to announce its firm intention to make an offer.
“A combination of the two businesses would provide a significant opportunity to unlock shareholder value,” REA said in a statement following media speculation about its overseas acquisition plans.
While Rightmove enjoys the largest market share in the UK property portal market, rival OnTheMarket Plc has recently launched an expansion drive after being acquired by US property company CoStar Group Inc.
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