CoStar's perfectly timed bid catches Domain, Nine off guard
Domain's chairman Nick Falloon was overseas, interim CEO Greg Ellis is just days into the new role, and its top shareholder Nine is in flux as a takeover bid landed.
Whether deliberate or not, US property firm CoStar's $2.6 billion bid for Domain was perfectly timed to catch the target, and its controlling shareholder Nine Entertainment, off guard.
The USD32 billion ($50 billion) Nasdaq-listed company made its move while Domain chairman Nick Falloon is overseas in Vietnam on a family holiday, and the company's interim CEO Greg Ellis is just days into the new job. Meanwhile, its 60% shareholder Nine does not have a permanent CEO following a leadership exodus last year.
Nine also reports results to the ASX next week and will be forced to address the bid when it fronts analysts and shareholders.
CoStar acquired a 7.5% stake in Domain from a single selling shareholder on Thursday to build an initial position of at $4.20 a share, according to people familiar with the situation speaking on the condition of anonymity to discuss confidential information.
