Murdoch-backed REA sweetens offer for UK's Rightmove to nearly $7.9 billion, FT reports

(Reuters) -REA Group, majority-owned by Rupert Murdoch's News Corp (NASDAQ:NWSA ), has sweetened its takeover offer for Britain's real estate portal Rightmove (OTC:RTMVY ) to about 5.9 billion pounds ($7.86 billion), the Financial Times reported on Friday.

The Australian firm is now offering 750 pence per Rightmove share, up from its initial bid of 705 pence, according to the report.

This comes after Rightmove rejected a $7.32 billion buyout offer on Sept. 11, deeming it an undervaluation of the company's prospects.

REA is now offering 750 pence per Rightmove share, the report said, higher than its initial 705 pence apiece bid.

A potential takeover by REA could boost the firm's growth in lucrative international markets, according to analysts, as Britain's housing market is considered to be triple the size of Australia's.

REA shares rose 0.5% to A$198.99 on Friday. Under UK takeover rules, REA has until the end of September to make a formal offer or walk away.



REA and Rightmove did not immediately respond to a Reuters request for comment.

($1 = 0.7509 pounds)

Source: Investing.com