Zoopla owner ZPG confirmed it has made an approach to Gocompare.com in relation to a combination of two businesses but that the approach was rejected.
It also confirmed that the board of ZPG was now currently considering its position.
Speculation of a take-over bid began on Tuesday after news that ZPG had made an unsolicited approach regarding a potential acquisition of the company for a consideration of 110p per share.
It was unanimously and unequivocally rejected by the board of Gocompare as it believed that it "fundamentally undervalued the business and its prospects". The company also confirmed that it was trading in line with the board’s prior expectations.
ZPG owns property sites such as PrimeLocation and Zoopla, the home services switching specialist uSwitch and recently acquired Money.co.uk, the financial services comparison site.
Shares in GoCompare jumped nearly 10% on Tuesday after Sky News first reported the bid approach.