Australia's Liontown Resources said it had knocked back an approach from the world's biggest lithium producer Albemarle Corp on Tuesday that valued the lithium developer at A$5.50 billion ($3.7 billion) and sent its shares rocketing 59%.
Brenton Saunders, a portfolio manager at Pendal Group, said a cost review made Liontown look vulnerable.
"For Albemarle it's not a riskless deposit. There are a lot of firsts in this project, it's an underground lithium mine and the labour market is still very tight," Saunders added. Liontown said its board had unanimously determined that the proposal "substantially undervalues" the company and was not in the best interests of shareholders.
Of Liontown's two prior proposals from Albemarle, the first offer of A$2.20 per share was on Oct. 20 last year, and the second of A$2.35 was earlier this month, it said.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Three important crypto stories to look out for this weekPolygon launches zkEVM mainnet beta, Metaverse Fashion Week returns and Australia kicks off its CBDC pilot.
Read more »
Labor party takes power in 'fresh start' for Australia's biggest stateThe Australian Labor Party in New South Wales state claims power in an election with voters backing Prime Minister Anthony Albanese's pledges on anti-privatisation and cost of living relief
Read more »
Australia's Latitude Group says 7.9 million driver licence numbers stolen in data theftAustralian digital payments and lending firm Latitude Holdings on Monday said it has determined that 7.9 million Australian and New Zealand driver licence numbers were stolen in a large-scale information theft on March 16.
Read more »
AUD/USD: Mildly bid around mid-0.6600s amid cautious optimism, Australia/US inflation in focusAUD/USD: Mildly bid around mid-0.6600s amid cautious optimism, Australia/US inflation in focus – by anilpanchal7 AUDUSD Inflation RiskAversion RBA Fed
Read more »
Australia edges closer to big emissions reduction bill with hit to gas investmentsAustralia's lower house on Monday passed an emissions reduction plan with curbs on some new gas and coal investments and a cap on total greenhouse gas emissions from the country's biggest polluters after a key deal with the Greens Party.
Read more »
Nearly 8 million driver license numbers and passport numbers stolen in Australia | CNNDigital payments and lending firm Latitude Holdings said on Monday that 7.9 million Australian and New Zealand driver license numbers were stolen in a large-scale information theft on March 16.
Read more »