Larvotto Resources, an Australian mining company, has recently turned down a $373 million takeover bid, citing concerns over the valuation. The offer, made by United States Antimony Corporation (USAC), valued Larvotto at approximately $722.9 million, or $1.40 per share. However, as of Friday, the implied offer value had dropped to $1.11 per share, based on USAC's closing share price, which resulted in a total valuation of $573.3 million. Larvotto's board of directors, after thorough consideration and advice from independent advisors, concluded that the offer significantly undervalued the company. They informed USAC of their decision, stating that the offer did not adequately reflect Larvotto's true worth. USAC, which holds a 10% stake in Larvotto, has not yet responded to Reuters' request for comment. This rejection highlights the challenges in the mining industry, where companies must carefully assess takeover offers to ensure they are fairly compensated for their assets.
