sinosteel-stands-firm-on-midwest-takeover-offer

Sinosteel stands firm on Midwest takeover offer

The Chinese steelmaker refuses to enter a bidding war for the Australian mining company and instead questions the legality of a competing reverse merger proposal by Murchison.
May 28, 2008
Sinosteel yesterday said it will not increase its A$1.36 billion $1.3 billion offer for Australian mining and exploration company Midwest and questioned the legality of a competing takeover proposal put forward by Murchison on Monday this week.

Market observers had been waiting to see how Sinosteel would respond to MurchisonÆs reverse merger proposal.

ôOur offer price is now final and A$6.38 per share is the maximum we are willing to pay,ö says Sinosteel president Tianwen Huang in a written statement filed with the Australian Securities Exchange ASX yesterday. ôIn an uncertain environment, Midwest shareholders will be in no doubt of our position.ö Sinosteel is being advised by JPMorgan.

The reverse merger proposal agreed between...
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