By Scott Murdoch and Aaditya GovindRao
(Reuters) -Australian property listing firm REA Group said on Wednesday Britain’s largest property portal Rightmove (OTC:) had rejected its 5.6 billion pounds ($7.32 billion) cash-and-stock takeover offer.
REA, which is 62% owned by Rupert Murdoch’s News Corp (NASDAQ:), did not cite any reason for the offer’s rejection by Rightmove.
REA shares dropped 1.25% in early trade on Wednesday.
The Australian company had offered to pay a total of 705 pence for each Rightmove share, representing a premium of 27% to the U.K. company’s closing price of 556 pence on Aug. 30, after which REA confirmed discussions.
The offer consisted of 305 pence in cash and 0.0381 new REA shares and the proposal was non-binding and subject to due diligence.
REA said had a deal been completed Rightmove shareholders would have owned about 18.6% of the combined group.
The cash component of the deal was due to be funded through debt and existing cash, REA said.
REA further said it will look to apply for a secondary listing in London, which will give the company access to a wider pool of investors.
($1 = 0.7645 pounds)