Why is the Pilbara Minerals share price rebounding 14% today?

One of the ASX 200 lithium giant's peers has batted away a takeover offer from an international monolith.

| More on:
A female employee in a hard hat and overalls with high visibility stripes sits at the wheel of a large mining vehicle with mining equipment in the background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Pilbara Minerals share price is rocketing 14% to trade at $3.93 right now
  • It comes amid a rejected takeover bid for peer Liontown Resources, posed by lithium giant Albemarle 
  • Liontown said the bid – a 64% premium on its share price's previous close – was opportunistic and undervalued it

The Pilbara Minerals Ltd (ASX: PLS) share price is soaring above the S&P/ASX 200 Index (ASX: XJO) on Tuesday. Its gains come amid news one of the lithium favourite's peers has rebuffed multiple takeover bids from industry monolith Albemarle Corporation (NYSE: ALB).

Right now, the Pilbara Minerals share price is $3.93. That's 14.24% higher than its previous close.

For comparison, the ASX 200 is gaining 1.21% at the time of writing.

Let's take a closer look at what might be going right for the ASX 200 lithium icon's shares today.

Is this driving the Pilbara Minerals share price today?

ASX 200 lithium shares, including Pilbara Minerals, are roaring out of the gates today amid news a company housed in the space has batted a takeover offer away.

Liontown Resources Ltd (ASX: LTR) has rejected a $2.50 per share takeover bid posted by Albemarle.

It was just the latest bid the US$26 billion company posted for its ASX 200 counterpart. It also faced rejection on a $2.20 bid in October and a $2.35 bid earlier this month.

The most recent offer represented a premium of 64% on the Liontown share price's previous close – $1.52. However, the company said the bid is opportunistic, substantially undervalues it, and isn't in shareholders' best interests.

Not to mention, the company has uncovered some potential sleuth buying by Albemarle subsidiary RT Lithium, which now holds around 2.2% of its outstanding shares.

 Right now, the Liontown share price is roaring 50% to trade at $2.29.

And plenty of Pilbara Minerals' other peers are also watching their share price rocket, seemingly on the back of soaring investor sentiment:

  • The Core Lithium Ltd (ASX: CXO) share price is leaping 18.6%
  • That of Sayona Mining Ltd (ASX: SYA) is up 13.5%
  • Allkem Ltd (ASX: AKE) stock is up 12.1%
  • Shares in Lake Resources NL (ASX: LKE) are jumping 12%

Today's gain included, the Pilbara Minerals share price has risen 9% year to date. It's also 23% higher than it was this time last year.

Comparatively, the ASX 200 has gained 1% so far this year and has fallen 5% over the last 12 months.

Motley Fool contributor Brooke Cooper 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Man on a laptop thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a Garfield-eque start to the trading week this Monday.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Healthcare Shares

If you invested $5,000 in this ASX pharmaceuticals stock a year ago, you'd have $34,711 now!

Just how lucky have investors been with this stock?

Read more »

A boy stands firm on a rocky cliff holding a rocket in each hand and looking up toward the sky, anticipating flying into space.
Share Gainers

Why these 2 ASX 200 shares are surging amid today's market meltdown

Investors are bidding up these two ASX 200 shares despite the wider market meltdown. But why?

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

Why 29Metals, Immutep, Insignia, and Perenti shares are pushing higher today

These shares are avoiding the market selloff. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Adore Beauty, Domino's, DroneShield, and Universal Store shares are rising today

Not all shares are falling today. Why are these rising?

Read more »

Lion roaring in the wild, symbolising a rising Liontown share price.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors once again pulled back from record highs today.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Share Gainers

Why Accent, Dusk, Evolution Mining, and Zip shares are pushing higher today

These shares are having a great session. But why?

Read more »

Hands reaching high for a trophy with a sunset in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another day and another record high for ASX shares this Wednesday.

Read more »