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.

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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.

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

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.

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