Why is the Pilbara Minerals share price rebounding 14% today?

One of the ASX 200 lithium giant's peers has batted away a takeover offer from an international monolith.

| More on:
A female employee in a hard hat and overalls with high visibility stripes sits at the wheel of a large mining vehicle with mining equipment in the background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Pilbara Minerals share price is rocketing 14% to trade at $3.93 right now
  • It comes amid a rejected takeover bid for peer Liontown Resources, posed by lithium giant Albemarle 
  • Liontown said the bid – a 64% premium on its share price's previous close – was opportunistic and undervalued it

The Pilbara Minerals Ltd (ASX: PLS) share price is soaring above the S&P/ASX 200 Index (ASX: XJO) on Tuesday. Its gains come amid news one of the lithium favourite's peers has rebuffed multiple takeover bids from industry monolith Albemarle Corporation (NYSE: ALB).

Right now, the Pilbara Minerals share price is $3.93. That's 14.24% higher than its previous close.

Created with Highcharts 11.4.3Pilbara Minerals PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

For comparison, the ASX 200 is gaining 1.21% at the time of writing.

Let's take a closer look at what might be going right for the ASX 200 lithium icon's shares today.

Is this driving the Pilbara Minerals share price today?

ASX 200 lithium shares, including Pilbara Minerals, are roaring out of the gates today amid news a company housed in the space has batted a takeover offer away.

Liontown Resources Ltd (ASX: LTR) has rejected a $2.50 per share takeover bid posted by Albemarle.

It was just the latest bid the US$26 billion company posted for its ASX 200 counterpart. It also faced rejection on a $2.20 bid in October and a $2.35 bid earlier this month.

The most recent offer represented a premium of 64% on the Liontown share price's previous close – $1.52. However, the company said the bid is opportunistic, substantially undervalues it, and isn't in shareholders' best interests.

Not to mention, the company has uncovered some potential sleuth buying by Albemarle subsidiary RT Lithium, which now holds around 2.2% of its outstanding shares.

 Right now, the Liontown share price is roaring 50% to trade at $2.29.

And plenty of Pilbara Minerals' other peers are also watching their share price rocket, seemingly on the back of soaring investor sentiment:

  • The Core Lithium Ltd (ASX: CXO) share price is leaping 18.6%
  • That of Sayona Mining Ltd (ASX: SYA) is up 13.5%
  • Allkem Ltd (ASX: AKE) stock is up 12.1%
  • Shares in Lake Resources NL (ASX: LKE) are jumping 12%

Today's gain included, the Pilbara Minerals share price has risen 9% year to date. It's also 23% higher than it was this time last year.

Comparatively, the ASX 200 has gained 1% so far this year and has fallen 5% over the last 12 months.

Should you invest $1,000 in Liontown Resources right now?

Before you buy Liontown Resources shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Liontown Resources wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 7 February 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A runner high-fives as he crosses the finish line in pole position
Share Gainers

Here are the top 10 ASX 200 shares today

It was a woeful end to a woeful week this Friday for ASX investors.

Read more »

Siblings jumping on a trampoline.
Share Gainers

3 ASX 200 stocks rocketing higher in this week's falling market

These three ASX 200 outperformers have surged 17% to 28% this week!

Read more »

A man wearing a white coat holds his hands up and mouth open with joy.
Healthcare Shares

Guess which ASX healthcare stock is rocketing 25% on big UK news

Investors are sending this ASX healthcare stock rocketing on Friday. But why?

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Share Gainers

Why Domain, Mayne Pharma, QBE, and Telix shares are jumping today

These shares are ending the week with a bang. Here's why they are jumping.

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Share Gainers

Here are the top 10 ASX 200 shares today

It was an awful Thursday for ASX investors.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Megaport, Nanosonics, Telstra, and Universal Store shares are storming higher today

These shares are catching the eye on Thursday with strong gains.

Read more »

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX 200 shares endured yet another rough session this hump day.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Corporate Travel, Light & Wonder, Navigator Global, and St Barbara shares are racing higher

These shares are having a good session on hump day. But why?

Read more »