*

Domain to support deal, pending superior offers and expert

approval

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CoStar's ( CSGP ) final offer at A$4.43/share

*

Domain down 2.3%

(Recasts throughout, adds background)

By Roshan Thomas and Sneha Kumar

March 31 (Reuters) - Australia's Domain Holdings

said on Monday it would recommend its shareholders to

vote in favour of U.S. property data group CoStar's ( CSGP )

takeover approach that values the real estate classifieds firm

at A$2.80 billion ($1.76 billion).

Shares of Domain slipped as much as 2.3% to A$4.230, as of

0218 GMT.

Domain's directors said they planned to unanimously support

the scheme of arrangement, provided that no superior proposal

emerges and an independent expert endorses the deal.

Domain Holdings granted CoStar ( CSGP ) exclusive due diligence

access for the U.S.-based group's revised buyout proposal.

CoStar ( CSGP ) sweetened its offer to A$4.43 per share on a "best

and final" basis last week, a 5.5% premium to its initial

proposal of A$4.20.

CoStar ( CSGP ) will be granted access to a virtual data room, Domain

said in a statement, adding the exclusivity period will expire

in four weeks unless extended by a further two weeks.

Domain's largest shareholder, Nine Entertainment ( NNMTF ),

had recently confirmed that it was in talks to sell its 60%

stake it owned in Domain.

Shares of Nine Entertainment ( NNMTF ) were down 2.4% to

A$1.508, their lowest level since February 20.

If the deal is successful, it would mark CoStar's ( CSGP ) first

venture into the Australian market and could transform the

landscape in a sector where listing volumes had declined due to

high living costs slowing the once-booming housing market,

though conditions are improving as interest rates are lowered.

($1 = 1.5918 Australian dollars)