Albemarle granted more time with $6.6b Liontown bid on life support

afr.com:

Global lithium giant Albemarle has requested more time to complete due diligence amid fading hopes its $6.6 billion takeover of Liontown Resources will succeed.

Gina Rinehart’s stake in Liontown has increased to 19.9 per cent.  Trevor Collens

The Tim Goyder-led Liontown board has granted Albemarle a seven-day extension, but the chance of the US company proceeding with a binding bid for the lithium prize in the face of Gina Rinehart emerging with what is in effect a blocking stake appears slim. Liontown shares fell 1.7 per cent to $2.87 on Thursday morning, below the $3-a-share offer price touted by Albemarle.

Mrs Rinehart has made it clear she wants long-term involvement in Liontown, either as a major shareholder or influential partner.

Liontown said on Thursday that Albemarle had relayed that its due diligence was “substantially complete” but it needed a short extension. “In response to this request, the Liontown board has determined to extend the exclusive due diligence period by seven days, on the same terms as previously announced,” Liontown told the market.

Albemarle declined to comment.

The Liontown share price slumped on Wednesday immediately after Mrs Rinehart’s Hancock Prospecting boosted its stake to 19.9 per cent.

Hancock said it had achieved its “strategic stake objective” after a $1.3 billion spending spree on Liontown stock at or slightly below the $3-a-share indicative price put forward by the New York-listed giant in early September.

The options for Albemarle appear to include working in partnership with Mrs Rinehart to secure Liontown and its flagship Kathleen Valley project in Western Australia, or abandoning a pursuit that started in October last year.

Mrs Rinehart has built up a large tenement package