Likelihood of offer price increasing?, page-24

The Australian

Speculation was mounting on Wednesday that a rival offer could be emerging for Azure Minerals, with talk that it was Chris Ellison behind large trading on Wednesday in SQM’s takeover target.

The stock had strong trading volumes on Wednesday, suggesting a buyer such as Mr Ellison or hedge funds were at work.

It is understood that about 4 million to 5 million shares had traded at up to $3.70 per share.

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Shares before close were up 3 per cent to $3.60.

Meanwhile, at the same time, there was a theory in the market that a rival offer from two parties working together could be on its way, although the identity of the suitors was unclear.

The obvious contenders would be the two billionaires Gina Rinehart and Chris Ellison working together to unseat SQM.

Yet Mr Ellison, who leads Australian listed mining company Mineral Resources, typically uses Bell Potter, but the latest trades were through independent brokers.

It comes after Chile’s SQM launched a $1.6bn bid for the business last week at $3.52 per share.

Soon after, Mrs Rinehart amassed more than 18 per cent of the stock, buying at $3.50 per share, the price the shares could be bought at should SQM opt to do a deal with Azure via a takeover structure rather than through a scheme of arrangement.

Mr Ellison was earlier said to be a shareholder under 5 per cent.

It comes after he purchased a 19.85 percent stake in lithium company Wildcat through Mineral Resources, as confirmed by the target on Tuesday night.

The 206.6m shares were purchased at 85c each.

Wildcat’s Tabba Tabba Lithium Project is 87km from the Wodgina Lithium Project, of which MinRes has a 50 per cent ownership interest.

More to come.