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ASX 200 lunch time report: Qantas, Wesfarmers, & Westpac lower

At lunch on Tuesday the S&P/ASX 200 index has continued its poor run and is down slightly to 6,125 points.

Here’s what has been happening on the benchmark index today:

Bank shares slide lower.

Australia’s big four banks have continued their slide on Tuesday. All four banks are in the red at lunch, with the Westpac Banking Corp (ASX: WBC) share price the worst performer with a 0.5% decline. Its shares have come under pressure since announcing further remediation provisions on Monday.

Wesfarmers launches Lynas takeover.

The Wesfarmers Ltd (ASX: WES) share price has tumbled 3.5% lower after announcing a $1.5 billion takeover offer for embattled rare earths producer Lynas Corporation Ltd (ASX: LYC). The conglomerate has offered $2.25 cash per share, which is a premium of 44.7% to the last closing price. Lynas has put its shares in a trading halt whilst it prepares a response to the offer.

Challenger shares surge higher.

It has been a positive day of trade for the Challenger Ltd (ASX: CGF) share price. The annuities company’s shares are up over 7% at lunch after it further progressed its strategic relationship with MS&AD Insurance Group Holdings Inc. (MS&AD) to support the company’s strategy for growth in Australia and internationally. MS&AD also advised that it intends to increase its stake in Challenger beyond 15% and seek a spot on the company’s board.

BINGO completes its acquisition.

The BINGO Industries Ltd (ASX: BIN) share price has charged 5% higher after announcing the completion of its Dial a Dump Industries acquisition. One broker that believes this is a game changer is Goldman Sachs. It has added the waste management company’s shares to its conviction buy list with a $2.40 price target.

Best and worst performers.

The best performer on the ASX 200 at lunch is the Challenger share price, followed by the BINGO share price. Not far behind them is the Saracen Mineral Holdings Limited (ASX: SAR) share price which has climbed 3.5% higher thanks to increased demand for risk-off assets. Going the other way is on course the Wesfarmers share price. Not far behind is the Qantas Airways Limited (ASX: QAN) share price which has tumbled 2% lower on the back of no news.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Challenger Limited and Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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