ASX 200 (ASX:XJO) midday update: Uniti jumps on takeover speculation, Rio Tinto and Yancoal tumble

Here's what is happening on the ASX 200 today…

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is under pressure and trading lower. The benchmark index is currently down 0.6% to 7,107.9 points.

Here's what is happening on the ASX 200 today:

Two male professional analysts discuss share price movements shown on the computer screen in front of them.

Image source: Getty Images

Uniti rockets on takeover speculation

The Uniti Group Ltd (ASX: UWL) share price was rocketing higher on Tuesday morning before being placed into a trading halt. Investors were buying the telco's shares amid speculation that it could be in exclusive takeover talks. Uniti has neither confirmed nor denied the speculation but will release an announcement relating to it tomorrow.

Rio Tinto falls despite acquisition news

The Rio Tinto Limited (ASX: RIO) share price is falling on Tuesday despite the mining giant announcing a non-binding proposal to acquire the remaining ~49% of the issued and outstanding shares of Turquoise Hill. Rio Tinto has made an all-cash offer of ~US$2.7bn. If the deal completes, Rio Tinto's share of the Oyu Tolgoi copper operation in Mongolia will increase to 66%. The team at Goldman Sachs believes the miner would be getting a very good deal.

Healius announces buyback

The Healius Ltd (ASX: HLS) share price is pushing higher today. Investors have been buying the healthcare company's shares after it announced a $100 million share buyback. The company notes that the buyback will be managed within the '10/12 limit' permitted by the Corporations Act. As a result, it does not require shareholder approval.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Uniti share price with a 17% gain prior to its trading halt. This was in response to takeover speculation. The worst performer has been the Yancoal Australia Ltd (ASX: YAL) share price with a 16% decline. This is predominantly due to the coal miner's shares trading ex-dividend this morning.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Uniti Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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