Investors in Liontown Resources are delighting at the share price action this week, as it appears another major player wants to buy into the company.
While US chemical giant Albemarle is offering to buy ASX: LTR for $3 a share, a sudden spike in volume saw the fairytale lithium firm cross above that mark in trade today.
Some 90 million shares in LTR traded on the Australian Stock Exchange Thursday, up from an average trading day volume of around 8 million shares.
Speculation is mounting that one of the world’s richest women, iron ore billionaire Gina Rinehart, may be behind the action – sure to be frustrating to Albemarle advisors keen to secure much-needed lithium supply.
Large Liontown share trade fuels talk of rival bid https://t.co/v52rJrcSSO
— Bridget Carter (@BridgetCarterb) September 7, 2023
Rinehart owns a vast iron ore, coal, gas, rare earth minearls and agricultural empire across Australia, with Forbes estimating her wealth at US$26 Billion.
Earlier this week, the Liontown board gave an initial blessing to a new offer by Albemarle for $3 a share (up from $2.50 earlier this year) to a new A$6.6 Billion offer – with a due diligence window opened.
The Liontown board did caveat that it was happy with the $3 per share offer – “in the absence of a superior proposal.”
However, shares spiked beyond that price and it appears an unknown player is building a possible deal-blocking position.
The Australian newspaper is now reporting that sources indicate it could be billionaire Rinehart undertaking a move for the lithium player. The billionaire already owns close to 5% of the company.
Post updates soon.
