Lynas shares rise on report it was in takeover talks earlier this year

Lynas Rare Earths (ASX:LYC) shares rose on Thursday after a Reuters report said that the company had been in takeover talks earlier this year, although the discussions ultimately did not proceed.

A Lynas spokesperson confirmed the talks, saying they involved a “high level of uncertainty” and had not progressed, according to the Reuters report on Wednesday.

Sydney-listed Lynas shares rose 2.1% to A$15.42 by 02:44 GMT after four straight days of losses, highlighting strategic interest in the world's largest rare-earth producer outside China.

The identity of the potential bidder was not immediately clear, the report said.

The talks also prompted Lynas to suspend its search for a permanent chief executive for about 4-1/2 months, Reuters reported, citing three people who attended investor briefings.

Lynas said its CEO search was continuing and that it had appointed Pol Le Roux as interim CEO after Amanda Lacaze retired in June, the report added.

The development comes as Western economies seek to reduce dependence on China for rare earths, which are used in electric vehicles, wind turbines, defence equipment and electronics.