The Liontown Resources Ltd (ASX: LTR) share price is down again after an update regarding the Albemarle Corporation (NYSE: ALB) takeover attempt.
Liontown is one of the larger ASX lithium shares. It’s currently the subject of a takeover approach by Albemarle, one of the world’s largest lithium businesses.
Takeover delayed?
The business has been making a steady flow of announcements regarding the possible takeover.
It referred to announcements on 4 September 2023 and 11 September 2023 about the revised non-binding indicative proposal from Albemarle Corporation to acquire all of the Liontown shares for $3 cash per share.
In those announcements, Liontown indicated that the Liontown board had determined to grant Albemarle an opportunity to conduct four weeks of exclusive due diligence – checking the financial books – to enable Albemarle to put forward a binding proposal.
Albemarle has told Liontown that while its due diligence is substantially complete, it requires a short extension of the four-week exclusive due diligence period.
The Liontown board has determined to extend the exclusive due diligence period by seven days on the same terms as previously announced. This could be a positive sign for Liontown shares.
The ASX lithium share said it will continue to keep the market informed of any material developments.
Gina Rinehart complicates the situation
Rinehart is the billionaire that’s involved with Hancock Prospecting. Interestingly, Hancock Prospecting has been investing in Liontown shares and has been steadily growing its stake.
The latest announcement, revealed today on 12 October 2023, showed that Hancock and associated parties have an aggregate beneficial and economic interest in 18.36% Liontown shares.
The question is what will Hancock Prospecting do? Is it trying to make Albemarle pay more or put it off? Does Hancock want to go into partnership with Albemarle or perhaps take over Liontown instead?
Final thoughts on the Liontown share price
The fact that Albemarle needs more time to do due diligence could be sending off mixed signals. Why does it need more time? But, it’s also a good sign that Albemarle is still in the hunt.
If I were a shareholder, I’d stay invested because at least one solid takeover offer could be coming. However, looking at it from the outside, I don’t think I would invest today.
