Liontown Resources was Tuesday’s bolt from the blue, attracting a bid from NYSE-listed lithium giant Albemarle.
There’s always plenty of hot air around Liontown. However, for once, the rumour of takeover interest was backed up by proof of three bids (and three rejections) from one of the sector heavyweights.
The bid couldn’t have come at a better time for Liontown, which only adds to the story. It has been hit by short sellers in the past two months, as have many of its lithium peers, putting pressure on the group as it heads towards production in 2024.
So when news of the $5.2 billion bid landed, Liontown shares raced. So too did the shares of other heavily shorted small-cap resources stocks. There were 20 small resources index members up more than 5 per cent on Tuesday.
Lithium royalty Albemarle Corporation didn’t just lob a $5.2 billion bid for Liontown on Monday evening, it lit up resources investors’ crystal balls that have long been throwing up visions of Liontown snagging a bid from a big global player.
A handful of individuals close to Liontown Resources chairman Tim Goyder could be instrumental in deciding where the $5 billion lithium explorer’s future lands.
Labor’s landslide victory in NSW has put a key question back on the agenda: how much longer will Woolworths hold on to its 9.1 per cent stake in Endeavour Group?
ANZ Banking Group’s first big debt markets trip in a post-Silicon Valley World has turned out to be a thumping hit, with investor bidding for more than $6 billion worth of bonds to let the bank print $4.25 billion at a tighter pricing than it had expected.
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