Wesfarmers' bid for Australia's Kidman Resources undervalues the lithium miner, analysts said on Friday.
Wesfarmers Mining News
The offer of A$1.90 per share represents a premium of 47.3% to Kidman's last closing price.
Output of rare earths oxides in the quarter ending March 31 was 5,444 tonnes, compared with 4,110 tonnes produced last year.
Comments foreshadow an intense takeover battle for the only proven producer of rare earth elements outside China.
The Wesfarmers bid highlights an imminent change in attitudes where it cannot be denied that rare earths will play a major role in the future.
Wesfarmers made a buyout offer of A$2.25 per Lynas share.
The offer represents a premium of nearly 45% on Lynas' closing price on Monday, but comes come with some significant conditions, including the rare dearth miner securing all necessary licences in Malaysia.