The Western Areas Ltd (ASX: WSA) share price is among the best performers on the Australian share market again on Friday.
In afternoon trade, the nickel producer's shares are up 10% to $3.08.
This means the Western Areas share price is now up 25% over the last two trading sessions.
Image source: Getty Images
Why is the Western Areas share price rocketing higher?
The catalyst for the rise in the Western Areas share price has been news that it is a potential takeover target of another ASX-listed miner.
According to an announcement on Thursday, the company has entered into change of control talks with battery materials producer IGO Ltd (ASX: IGO).
It commented: "Western Areas confirms that it is in preliminary discussions with IGO Limited in relation to a change of control proposal and the basis upon which engagement and due diligence between the parties could proceed."
However, it also warned: "Given the preliminary stage of discussions, there can be no assurance whether any transaction will eventuate or what the terms and conditions of any such transaction might involve. Western Areas will continue to keep shareholders updated as appropriate."
What else is driving its shares higher?
Also potentially giving the Western Areas share price a lift today was news that Wyloo Consolidated Investments has become a substantial shareholder. Wyloo is part of Andrew "Twiggy" Forrest's Tattarang Group.
The initial substantial holder notice reveals that Wyloo became a substantial holder on Thursday with a 5.3% stake.
Judging by the Western Areas share price reaction today, investors appear to believe this could be the start of a bidding war. Alternatively, it could be building up a position in order to block a takeover.
Mr Forrest's Wyloo Metals business is currently using its 37.5% stake in Noront Resources to block BHP Group Ltd (ASX: BHP) from acquiring the Canadian nickel-copper miner.
Neither Wyloo or Western Areas have commented on the substantial shareholder notice.
