Yesterday's takeover bid for rare earths miner Lynas Corporation (ASX: LYC) was a bold and unexpected move from Wesfarmers (ASX: WES), but the acquisition target won't have a bar of it.
Cashed up after offloading Coles (ASX: COL), the Wesfarmers board may have thought its $2.25 per share offer could persuade Lynas at a 44.7 per cent premium, but the miner itself has been trading at a significant discount to its highs of $2.96 per share last year.
In a response today, the Lynas board rebuffed Wesfarmers noting not only its substantial in-house capability and intellectual property, but its unique position as the only rare earths miner and processor outside China
The company emphasised the value of its Tier 1, long life, high grade asset in its Mt Weld ore body in Western Australia.
"The Lynas Board has evaluated the indicative non-binding highly conditional proposal and concluded that it will not engage Wesfarmers on the terms outlined in the indicative and highly conditional proposal," the company stated.
"In coming to this conclusion, the Board has drawn on the Company's extensive knowledge of stakeholder interests, and current market and operating conditions.
"It has also consulted with its advisers on the terms of the proposal, and validated its view as to value."
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