Proactive Investors -
- FTSE 100 up eight points
- Rightmove offer increased
- Fuel prices drop
Rightmove will ‘carefully consider’ revised offer
Rightmove PLC (LON:RMV) said it will “carefully consider” the latest unsolicited takeover offer tabled by REA Group.
Rightmove chair Andrew Fisher said: "Rightmove is an exceptional company with a very clear strategy, a consistent track record of delivery and a strong management team.
“The board is confident in the company's short and long term prospects, and sees a long runway for continued shareholder value creation.
"Based on the implied value and structure of REA's first and second indicative non-binding proposals, we considered these proposals to be uncertain, highly opportunistic and unattractive. Accordingly, the board unanimously rejected them.
"The board will continue to act on behalf of our shareholders and respond to the most recent proposal in due course."
Stocks largely flat
The FTSE 100 fell a few points in opening Monday exchanges, meaning the blue-chip index is essentially flat from last week’s closing price.
Rightmove PLC is the strongest riser, adding 3.5% following a second revised offer from potential Aussie suitor REA Group.
Among the other top risers, Marks & Spencer Group plc is up 1.5% and Haleon PLC (LON:HLN) has added nearly a percentage point.
Fuel prices approaching lowest level in three years, says RAC
Fuel prices at UK petrol stations are dropping at the fastest rate seen this year, according to the RAC.
As of 19 September, a litre of unleaded was 7p cheaper than the same time in August, as was a litre of diesel.
It marks a sharp contrast to the previous eight months, where fuel costs saw little change despite fluctuations in global oil markets.
The last time prices fell this sharply was between late November and the end of December 2023.
Giving more good news for drivers, RAC fuel spokesperson Simon Williams said more price cuts could be on the way.
“Based on wholesale pump prices, which is what retailers pay to buy the fuel in the first place, we know there’s scope for further price cuts so we very much hope that within the next few weeks we’ll see pump prices reach their lowest levels in three years,” he stated.
Supermarket forecourts offer some of the best petrol prices, according to the RAC Fuel Watch.
Asda and Morrisons win the joint title of the cheapest supermarket at 132.1p per litre on average, followed by J Sainsbury PLC (LSE:LON:SBRY) and Tesco PLC (LSE:LON:TSCO).
REA makes third bid for Rightmove
Rightmove PLC has received a second revised offer from Murdoch-owned REA Group valuing the property portal at approximately £6.1 billion.
This marks the third approach made by REA, following an initial proposal on 5 September at 705p per share and a revised offer on 16 September at 749p per share.
Rightmove has rebuffed all previous offers on the grounds that they are “wholly opportunistic”, but has yet to make a statement on this latest offer.
REA’s third approach for Rightmove represents a 9.2% increase from its initial proposal and a 39% premium to Rightmove’s undisturbed share price of 55p on 30 August 2024.
Shareholders of Rightmove would hold approximately 20% of the combined group following the completion of the transaction.
“We are genuinely disappointed at the lack of engagement by Rightmove's board and we strongly encourage the Rightmove board to engage,” REA’s chief executive Owen Wilson sai in making the third approach.
“We believe that the combination of our world-leading expertise and technology with the attractive Rightmove business will create an enhanced experience for agents, buyers and sellers of property.
“We live in a world of intensifying competition and this proposed transaction would bring together two highly complementary digital property businesses for investment and growth.”
Proactive has asked Rightmove for a comment.
Thames Water creditors reportedly line up £1bn
Creditors of troubled London water supplier Thames Water are lining up a £1 billion cash injection by the end of the year to keep the company afloat, according to a weekend report from The Sunday Times.
It follows a statement from Thames Water on Friday that it only has cash reserves for another eight months.
Thame Water faces nationalisation if it is unable to repay its more than £15 billion worth of debt on the books.
Creditors are said to be seeking a market-based solution to avoid a forced nationalisation of the utility, which the government has shown little desire to enact.
The Sunday Times said the loans would have preferential treatment in the event of a wind up.
Markets gains expected
Stocks are expected to bounce higher when the week’s trading session gets underway today, with FTSE 100 futures pointing to 38 points of gains.
It follows a net negative week in which the blue-chip index lost half a percentage point, or around 43 points.
This morning brings a smattering of macroeconomic releases, including a flash PMI print and the CBI industrial trends readout.
Thames Water will be in focus again, after weekend reports disclosed that the troubled utility’s creditors are plotting £1 billion of emergency funding to keep the London water supplier afloat.