Sinosteel stake in Midwest inches up
July 7, 2008
July 7th (News.com.au) – CHINESE metals trader Sinosteel’s stake in takeover target Midwest has risen to 45 per cent, according to a regulatory filing, as it battles for control of the iron ore prospector
Sinosteel held 45.58 percent of Midwest as of July 4, up from 43.62 percent at the time of its last filing on June 13.
Sinosteel is battling with Murchison Metals for control of Midwest, and has offered $1.36 billion. Both firms want to turn Midwest into a major producer of iron ore, a commodity that is in great demand from China’s steel industry.
Murchison has proposed a merger with Midwest, an all-share offer which initially equated to a 10 per cent premium to Sinosteel’s $6.38 a share offer, but which has wilted as Murchison’s share price declined.