The Liontown Resources Ltd (ASX: LTR) share price is up 0.33% to $3.01 on Wednesday amid news that Gina Rinehart has once again upped her stake in the lithium junior.
Rinehart has been buying up Liontown shares at a rapid rate over the past four weeks.
She crossed the 5% threshold to become a 'substantial holder' on 11 September, and last Friday, she became the company's largest shareholder with a 16.7% holding following several purchases.
As of Wednesday morning, Rinehart has amassed an 18.36% stake in Liontown after more purchases this week. On each occasion, she has paid no more than $3 per share.
Rinehart's company, Hancock Prospecting, issued a statement hinting that it may acquire more shares and lift its position to the maximum allowed, which is 19.9%.
What are Rinehart's intentions?
In the statement, the company said:
Hancock welcomes the opportunity to participate in the Kathleen Valley project as a shareholder, and have an influence on the company's overall future direction – including where decisions are to be made by shareholders.
Well, shareholders will be making a pretty big decision in the near future if United States suitor Albemarle Corp (NYSE: ALB) decides to make its takeover offer binding.
Albemarle issued a non-binding offer on 4 September to buy all Liontown shares at $3 per share. This offer valued Liontown at $6.6 billion at the time.
The Liontown board liked the deal enough to grant Albemarle an exclusive four-week period to undertake due diligence work.
This means it's getting a look at the books with the aim of shoring up its offer.
The Liontown board has already committed to taking the takeover offer to a shareholder vote if it becomes binding, and in the absence of a superior offer.
But Rinehart could potentially get in the way there.
You see, the takeover can only proceed if a minimum of 75% vote in favour. With Rinehart now owning 18.36%, it's highly likely that Albemarle will need her support to get the deal over the line.
That means she can influence the terms of the deal itself, or she can try to block it altogether.
Rineharte may be seeking to maintain influence over the company's future indefinitely or even take it over herself. We just don't know yet.
Albemarle is expected to complete its due diligence process soon.
In a statement on 11 September, Liontown announced the two companies had agreed to the terms of that process, and that Albemarle would get started "shortly" and finish its work in about four weeks.
It's now been a month, so an update can't be far off.
Liontown share price higher since renewed bid
The Liontown share price has risen by 14.5% since Albemarle renewed its takeover bid.
In the year to date, the ASX lithium stock has lifted by 144%.
