Rupert Murdoch's REA Group has withdrawn its £6.2 billion ($8.3 billion) bid to acquire Rightmove PLC just hours before a regulatory deadline, after the British property company's board rejected multiple offers.

The Australian real estate giant confirmed on Monday that it "does not intend to make an offer for Rightmove," stepping back from what could have been one of the year's largest property industry deals. REA Group had until 5 p.m. to make a formal offer or retreat, per the U.K.'s "put up or shut up" rule under the Takeover Code.

REA £6.2B Rightmove Bid : Rightmove Rebuffs REA’s Offers

Despite REA's persistent attempts to woo the British real estate platform, Rightmove's board remained resolute in rejecting the Australian company's advances. "We were disappointed with the limited engagement from Rightmove that impeded our ability to make a firm offer within the timetable available," REA CEO Owen Wilson stated. "They had nothing to lose by engaging with us."

The latest proposed offer, disclosed on Friday, valued Rightmove at £6.2 billion. It would have given shareholders 775 pence per share, alongside a special dividend of 6 pence, and allowed them to retain their 2024 dividend while remaining on the London Stock Exchange via a secondary listing of the combined group. However, Rightmove's board deemed the offer insufficient, stating it "materially undervalues" the company.

Shareholder Interests and Stock Impact

Rightmove's board asserted that shareholder interests would be better served by continuing to pursue its own standalone strategic plan, which focuses on long-term value creation. Andrew Fisher, chair of Rightmove, expressed the board's desire for certainty, urging REA to submit a final proposal by the 5 p.m. deadline, but the Australian company declined to proceed further.

Shares of Rightmove took a hit following the announcement, falling approximately 8.5% during Monday's afternoon trading compared to the previous Friday's close at 668.60 pence.

Future Opportunities and Takeover Rules

Although REA has backed down for now, the door remains open for future offers, either from REA with Rightmove's consent or from a third-party suitor. REA had been pursuing Rightmove since late August, submitting four offers within a valuation range of £5.6 billion to £6.2 billion.

However, Rightmove's management maintained that the proposed combination would not provide sufficient value for shareholders. REA argued that the deal would have given investors a stake in a "fast-growing, diversified, global leader" while pointing out that Rightmove's stock performance has been stagnant for two years.

REA £6.2B Rightmove Bid : Industry Reactions

Russ Mould, investment director at AJ Bell, suggested REA may need to rethink its strategy to win over Rightmove's board in the future. "They're going to have to radically change the price and structure of the deal if they have any chance of succeeding," Mould said, adding that the heightened takeover interest could position Rightmove favorably in the market, potentially attracting new investors.

Despite REA's frustration with what it described as Rightmove's "limited engagement," Rightmove insisted it had provided customary and appropriate levels of communication for an unsolicited bid. The board also declined REA's requests for access to confidential information, which prevented the Australian firm from conducting due diligence.

REA £6.2B Rightmove Bid : Legal Advisors

REA Group is being advised by Freshfields Bruckhaus Deringer LLP, while Rightmove has enlisted Linklaters LLP, with corporate partners Iain Fenn and Dominic da Gama Campos leading the legal team.