News Ltd. increased its offer for realestate.com.au to A$2.50 a share from A$2.00 a share... UPDATE: News Corp Raises B

Submitted by admin on Tue, 2005-10-18 11:00. ::

News Ltd. increased its offer for realestate.com.au to A$2.50 a share from A$2.00 a share, valuing the local online advertising group around A$269 million.

"The price is now within the value range ascribed to realestate.com.au shares by Lonergan Edwards in its independent expert's report," News Ltd. said in a statement. "It will not be increased again."

In line with News Corp.'s strategy, News Ltd., which owns a number of major newspapers in Australia including Sydney's Telegraph and national broadsheet The Australian, is beefing up its presence in the online arena.

Assessor Lonergan Edwards has valued the online property advertising group at A$2.48-A$2.73 a share compared to Tuesday's closing level at A$2.43, down four cents.

News Corp.'s rivals including John Fairfax Holdings Ltd. (FJX.AU) and Kerry Packer's Publishing & Broadcasting Ltd. (PBL.AU) are also pursuing online growth strategies seeking new revenue channels amid a slowing traditional advertising market.

The online classified market is seen as a key area for growth. PBL recently agreed to combine its online trader business with online car classifieds group carsales.com.au while Fairfax bought online dating venture rsvp.com.au for A$40 million in July.

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