Turquoise Hill Resources (NYSE:TRQ) stock is is falling on Monday after the company rejected a takeover offer from Rio Tinto (NYSE:RIO).
In a press release from the company, leaders said that the offer from Rio Tinto isn’t in the best interest of TRQ shareholders. This comes after a special committee reviewed the offer alongside financial advisor BMO Capital Markets.
Rio Tinto was offering 34 CAD per share for TRQ stock. According to the company’s Special Committee, this doesn’t “fairly reflect the fundamental and long-term strategic value of the Company’s majority ownership of the Oyu Tolgoi project.”
Steve Thibeault, interim CEO of Turquoise Hill Resources, said the following in the news release.
“Oyu Tolgoi is an attractive tier one asset, and we remain highly focused on and optimistic about its transformation into one of the world’s great copper mines, positioning Oyu Tolgoi to become a high-grade, low-cost, large-scale producer with a long mine life.”
News of the rejected takeover offer has TRQ stock experiencing heavy trading on Monday. As of this writing, more than 6 million shares of the company’s stock have changed hands. That’s a major increase compared to its daily average trading volume of 728,000 shares.
TRQ stock is down 12.8% as of Monday afternoon but is still up 40.8% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.