Citi sees less chance of potential deal between Australia's REA and UK's Rightmove
** Analysts at Citi see "very low" probability of a potential deal between Australian property listing company REA Group REA.AX and U.K.'s Rightmove RMV.L
** Rightmove rejected a sweetened $8.1 bln takeover proposal from Rupert Murdoch-owned REA, saying the bid was still "unattractive"
** Citi notes key concern among REA investors was that the company was willing to go materially higher than its third bid, which valued Rightmove at £7.70 apiece at the time of offer
** Brokerage says REA seemed to have decided to pause and not make another offer without engagement with RMV board
** While REA likely has a higher synergy estimate, we struggle to see the rationale for REA paying more than £8.00 per share - Citi
** REA can make a formal offer until Sept. 30 for Rightmove, or walk away
** As of last close, REA stock up 6.2% YTD
Reporting by Himanshi Akhand in Bengaluru
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
