Liontown share price climbs on response to takeover rumours

The company rejected rumours it received a new acquisition offer last month.

| More on:
ASX share price rise represented by investor riding atop leaping lion

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 Liontown share price is in the green after the company shot down rumours of a new takeover bid
  • Reports a new suitor had bid around $2.75 per share for the ASX 200 lithium hopeful emerged last night
  • Liontown entered a short-lived freeze this morning before stating it hasn't fielded any takeover bids since March

The Liontown Resources Ltd (ASX: LTR) share price has exited a short-lived trading halt, responding to a report that it had fielded a new takeover offer.

In what might be disappointing news for merger and acquisition (M&A) fans, the S&P/ASX 200 Index (ASX: XJO) lithium hopeful dismissed the rumours.

It said it hasn't been approached by any suitor since New York-listed lithium giant Albemarle's recent $2.50 per share bid, rejected in March.

The Liontown share price was frozen at $2.71 for much of this morning. It has since leapt 1.66% on its return to trade. Right now, the stock is swapping hands for $2.755 apiece.

Let's take a closer look at what's been going on with the ASX 200 lithium developer today.

Liontown share price lifts on response to takeover rumours

Plenty of eyes were on the Liontown share price this morning as rumours Albemarle's highest offer could have been bested by 10% were shot down.

The Australian Financial Review reported yesterday evening that a second suitor was on the scene, facing up against Albemarle for control of the lithium hopeful.

But the report was rebuffed by Liontown this morning, with the company saying:

Liontown advises that it has not received any takeover proposals, including any non-binding indicative proposal, since the rejection of the Albemarle proposal on 28 March 2023.

Of course, many market watchers were likely excited by the prospect of a new takeover offer.

Particularly due to the calibre of "logical bidders" named by the publication. They included South32 Ltd (ASX: S32), Fortescue Metals Group Limited (ASX: FMG), and Wesfarmers Ltd (ASX: WES).

The rumoured bid was said to have been priced at around $2.75 per share. Such an offer would have represented a 1% premium on the stock's current price. It would also have been 3% lower than the record high of $2.835 the stock reached last month.

Bell Potter, for one, appears to believe a successful offer would need to be priced higher. 

It slapped Liontown shares with a $3.35 price target following Albemarle's highest offer, my Fool colleague James reported. The broker said Albemarle's bid was "reasonable, but not full".

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 positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Mergers & Acquisitions

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Mergers & Acquisitions

APM share price placed on ice as $1.8 billion deal goes dud

It's all question marks and raised eyebrows for shareholders of this ASX company today.

Read more »

Young man sitting at a table in front of a row of pokie machines staring intently at a laptop. looking at the Crown Resorts share price
Mergers & Acquisitions

Could Star Entertainment shares be next in line to catch a takeover bid?

Star shares have been battered, but could a buyout be coming?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Bank Shares

Own CBA shares? Here's the tech stock the banking giant just invested in

CBA has made an interesting investment. Here's what you need to know.

Read more »

Man pointing at a blue rising share price graph.
Mergers & Acquisitions

Guess which ASX 300 stock is rocketing 10% on a $985 million cash bid!

Investors are piling into the ASX 300 stock on the back of a $985 million cash takeover bid.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Mergers & Acquisitions

Guess which ASX blue-chip share is throwing $202 million at another acquisition

This Aussie healthcare company is growing its presence in Switzerland.

Read more »

A man stands with his arms crossed in an X shape.
Mergers & Acquisitions

Boral share price falls after rejecting Seven Group takeover

The offer 'undervalues' Boral according to its committee.

Read more »

Miner looking at a tablet.
Materials Shares

Mineral Resources share price marching higher on new lithium project acquisition

ASX 200 investors are bidding up the Mineral Resources share price on Monday.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Technology Shares

Appen shares plunges 17% after takeover collapse

Well that didn't take long...

Read more »