Albemarle given more time in Liontown data room

The board of Liontown Resources has given proposed suitor Albemarle Corporation another week to complete its due diligence ahead of a proposed $6.6 billion takeover. 

New York Stock Exchange-listed Albemarle has been examining Liontown exclusively for the past four weeks since launching a non-binding indicative proposal to buy the company in September. 

With that exclusivity due to come to an end this week, Liontown has now given Albemarle more time to complete its due diligence. 

"Liontown has been advised by Albemarle that, while Albemarle's due diligence is substantially complete, it requires a short extension of the four-week exclusive due diligence period," the update from Liontown read. 

"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."

Once this process has been completed, Albemarle would have the ability to make its $3.00 per share offer binding. 

The extension comes with the now significant presence of Hancock Prospecting on Liontown's shareholder register. 

Hancock disclosed a substantial stake of 7.7 per cent in Liontown in early September and has since overtaken chairman Tim Goyder as the company's largest shareholder. 

The private mining company's 19.9 per cent stake in Liontown is likely to spell difficulty if Albemarle's offer for Liontown progresses to a scheme of arrangement, which would require 75 per cent approval. 

Liontown shares were down 1.71 per cent at 1:27pm AEDT to trade at $2.87.