Rightmove has rejected a takeover approach valued at £5.6bn by Australian rival, REA Group.

The offer by REA, which is backed by Rupert Murdoch’s News Corp, was described by Rightmove as “wholly opportunistic”.

The UK-based property portal also said the Australian’s group offer “fundamentally undervalued Rightmove and its future prospects”.

“Rightmove shareholders should take no action in respect of the proposal,” Rightmove said in a statement to the London Stock Exchange.

In response, REA has stated it plans to list on the London Stock Exchange to directly compete with Rightmove.

REA said in its own statement that with its offer for Rightmove it was aiming to create a global digital property company with “strong margins and significant cash generation”, underpinned by number one positions in Australia and the UK.

However, the proposal has been rejected “unanimously” by Rightmove’s board, and the UK group said it would provide a further update “as and when appropriate”.

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