Sept 20 (Reuters) - REA Group ( RPGRF ), majority-owned

by Rupert Murdoch's News Corp ( NWSA ), has sweetened its

takeover offer for Britain's real estate portal Rightmove ( RTMVF )

to about 5.9 billion pounds ($7.86 billion), the

Financial Times reported on Friday.

The Australian firm is now offering 750 pence per

Rightmove ( RTMVF ) share, up from its initial bid of 705 pence, according

to the report.

This comes after Rightmove ( RTMVF ) rejected a $7.32 billion

buyout offer on Sept. 11, deeming it an undervaluation of the

company's prospects.

REA is now offering 750 pence per Rightmove ( RTMVF ) share, the

report said, higher than its initial 705 pence apiece bid.

A potential takeover by REA could boost the firm's

growth in lucrative international markets, according to

analysts, as Britain's housing market is considered to be triple

the size of Australia's.

REA shares rose 0.5% to A$198.99 on Friday. Under UK

takeover rules, REA has until the end of September to make a

formal offer or walk away.

REA and Rightmove ( RTMVF ) did not immediately respond to a

Reuters request for comment.

($1 = 0.7509 pounds)