Australian real estate firm REA Group said on Monday it was considering buying London-listed peer Rightmove via a possible cash and share offer, sending its shares down nearly 6.0 per cent.
Shares of the Melbourne-headquartered group, majority-owned by News Corp, fell as much as 5.9 per cent to A$206.01 by 0118 GMT, posting their biggest intraday percentage drop since December 2022. The benchmark stock index was down 0.3 per cent.
REA Group, in which the Murdoch family owns more than 61 per cent, said it had not yet approached or had any discussions with Rightmove on a potential offer.
Rightmove, Britain's largest property portal, had a market value of 4.36 billion pounds (US$5.73 billion), as of Friday's close.
Last month, REA Group posted a rise in annual profit, lifted by higher national home listings in Australia. Rightmove, on the other hand, has flagged falling new home numbers in Britain.
UK-based Rightmove did not immediately respond to a Reuters' request for comment.
"There can be no certainty that an offer will be made," REA Group said in a statement.
The Australian company now has to either lodge a firm bid for Rightmove or back out by Sept. 30, according to the UK's takeovers rule.
(US$1 = 0.7613 pounds)