FTSE 100 movers: Rightmove slides as REA walks away; 3i weak
London’s FTSE 100 was down 0.7% at 8,259.42 in afternoon trade on Monday.
Rightmove tumbled after Rupert Murdoch’s Australian property business REA Group said it was abandoning its pursuit of the property portal after a fourth, £6.2m takeover proposal was rejected.
"REA's approach to Rightmove's board was driven by a clear strategic rationale and the opportunity to create a global and diversified digital property company, with strong margins and significant cash generation, underpinned by number one positions in Australia and the UK," it said.
"REA believes the proposed combination would have provided Rightmove shareholders the opportunity to meaningfully participate in a fast growing, diversified, global leader whilst receiving value certainty in an operating environment challenged by increased market competition."
News of the withdrawal came after Rightmove said earlier that it was rejecting the offer on the basis that it continued to undervalue the group.
Under the terms of the latest offer, Rightmove shareholders would have received 346p per share in cash and 0.0417 new REA shares - which implied an offer value of 780p - and a dividend of 6p in cash in lieu of any final dividend for 2024.
BA owner IAG and easyJet both flew lower, possibly due to escalating tensions in the Middle East.
3i Group fell following a report that short-seller ShadowFall Capital and Research has taken out a multimillion-pound short position against the investment trust, saying that its largest holding, Action, was overvalued.
According to the Sunday Times, ShadowFall Capital has taken out the short position on the basis that European discount retail chain Action is significantly overvalued.
FTSE 100 - Risers
Hikma Pharmaceuticals (HIK) 1,918.00p 1.16%
Experian (EXPN) 3,966.00p 0.92%
BP (BP.) 391.35p 0.82%
Glencore (GLEN) 428.90p 0.43%
Marks & Spencer Group (MKS) 377.40p 0.37%
Scottish Mortgage Inv Trust (SMT) 846.40p 0.36%
Next (NXT) 9,776.00p 0.35%
Rolls-Royce Holdings (RR.) 526.80p 0.34%
Associated British Foods (ABF) 2,329.00p 0.26%
Rio Tinto (RIO) 5,322.00p 0.24%
FTSE 100 - Fallers
Rightmove (RMV) 618.20p -7.54%
Smiths Group (SMIN) 1,692.00p -3.92%
Intermediate Capital Group (ICG) 2,254.00p -3.34%
International Consolidated Airlines Group SA (CDI) (IAG) 206.10p -2.92%
easyJet (EZJ) 526.80p -2.48%
IMI (IMI) 1,838.00p -2.23%
Frasers Group (FRAS) 848.00p -2.19%
Airtel Africa (AAF) 114.30p -2.14%
3i Group (III) 3,317.00p -2.12%
Barclays (BARC) 224.60p -2.03%