Investing.com - Berenberg downgraded Kenmare Resources Plc. (LSE:KMR) from Buy to Hold and lowered its price target to GBP3.90 from GBP5.80 following the collapse of takeover negotiations.

The research firm cited the failed acquisition attempt by Oryx Global Partners (NYSE:GLP) Limited and former CEO Michael Carvill as the primary reason for the downgrade. Kenmare had initially rejected a non-binding proposal from the Oryx consortium on March 6, which Berenberg had considered "a very attractive price."

Significant market volatility following the initial bid, including Liberation Day tariffs and deteriorating economic conditions in China, led the Oryx consortium to offer a lower revised bid price. China represents a key market for mineral sands demand, a critical factor for Kenmare’s business.

The two parties were unable to agree on terms, resulting in both sides walking away from the potential deal. With no other clear bidders interested at the previously proposed price, Kenmare’s shares dropped substantially, closing down approximately 20%.

Berenberg’s new price target is based on a blend of 1x risked net asset value (with a 0.7x risk factor) and 2.1x EBITDA, which represents Kenmare’s three-year trailing average EV/EBITDA multiple.

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