Talison Lithium to Talk with China's Tianqi on Takeover

Talison Lithium said on Wednesday that it will hold talks with Chengdu Tianqi Industry Group to determine if the Chinese company's takeover offer represents a "superior proposal," as defined under an existing friendly deal with Rockwood Holdings.

Tianqi's C$7.15-a-share offer, which values the Perth-based, Toronto-listed lithium producer at C$806 million ($807.66 million), is 65 Canadian cents a share higher than the bid from Rockwood, a U.S.-based chemical producer.

A "superior proposal" takes into account the monetary value of the offer, the likelihood of conditions being attached to a takeover, and the timing required to complete a deal.

Talison produces hard rock lithium at its Greenbushes lithium project in Western Australia, primarily for export to China. The company also owns the Salares 7 lithium brine project in Northern Chile.