Liontown Resources Ltd (ASX: LTR) shares are ending lower on Friday.
In morning trade, the lithium developer's shares are down slightly to $3.01.
However, importantly, this means they are still trading above the $3 cash per share non-binding takeover offer made by Albemarle Corporation (NYSE: ALB) earlier this week.
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What's going on with Liontown shares?
Speculation is rife at present with what could be going on behind the scenes at the Kathleen Valley Lithium Project.
One rumour that continues to swirl is that Gina Rinehart's Hancock Prospecting could have been buying Liontown shares in recent sessions.
Hancock Prospecting is believed to currently own a 4.9% stake in the lithium developer. This keeps it just below the 5% threshold that would force it to show its hand as a substantial shareholder.
However, according to The Australian, market sources are suggesting that yesterday's buying spree was by Hancock Prospecting which was aiming to increase its stake to about 10%.
The reason that Hancock Prospecting is believed to be the buyer is that the trades were undertaken by Euroz Hartleys, which has acted on Rinehart's behalf in the past.
The report also suggests that Hancock Prospecting could be looking to team up with Mineral Resources Ltd (ASX: MIN) as part of a takeover approach for Liontown. And given how Mineral Resources already has a relationship with Albemarle, it is possible that all three could be looking for a slice of the pie.
As things stand, it is only speculation. But if Hancock Prospecting is behind the buying, it will need to show its hand very shortly with a substantial shareholder notice.
In addition, with Albemarle currently undertaking due diligence, the unknown suitor will need to act fast to make its play. If not, it will have made a big investment in Liontown shares for zero gain if it is taken over for $3.00 per share.
