Saturday, May 31, 2008

Sinosteel Removes Condition In Midwest Takeover

Sinosteel Corp, China's second-biggest iron ore trader, has removed a condition from its $1.36 billion takeover offer for Australian ore producer Midwest Corp.

Sinosteel is offering Midwest shareholders $6.38 a share, removing a condition of a minimum of 50% acceptances to boost its offer from $5.60. The Beijing-based company increased its stake in Midwest to 20.58%.

The bidder is battling Midwest's neighbouring iron ore rival Murchison Metals for control of its Weld Range deposit in Western Australia. Chinese companies are snapping up mining assets in Australia to ensure supplies for the world's fastest-growing economy.

Harbinger Capital Partners, a US-based hedge fund, has, boosted its stake in Midwest to 9.11%.

Harbinger is also the largest shareholder in Murchison, with a 19.98% stake.

Source: The Age

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