Sept 11 (Reuters) - Australian property listing firm REA

Group ( RPGRF ) said on Wednesday Britain's largest property

portal Rightmove ( RTMVF ) had rejected its 5.6 billion pounds

($7.32 billion) cash-and-stock takeover offer.

REA, which is 62% owned by Rupert Murdoch's News Corp ( NWSA )

, did not cite any reason for the offer's rejection by

Rightmove ( RTMVF ).

REA shares dropped 1.25% in early trade on Wednesday.

The Australian company had offered to pay a total of 705

pence for each Rightmove ( RTMVF ) share, representing a premium of 27% to

the U.K. company's closing price of 556 pence on Aug. 30, after

which REA confirmed discussions.

The offer consisted of 305 pence in cash and 0.0381 new REA

shares and the proposal was non-binding and subject to due

diligence.

REA said had a deal been completed Rightmove ( RTMVF ) shareholders

would have owned about 18.6% of the combined group.

The cash component of the deal was due to be funded through

debt and existing cash, REA said.

REA further said it will look to apply for a secondary

listing in London, which will give the company access to a wider

pool of investors.

($1 = 0.7645 pounds)

(Reporting by Aaditya Govind Rao and Archishma Iyer in

Bengaluru; Editing by Alan Barona and Muralikumar Anantharaman)