sinosteels-bold-play-for-midwest-is-paying-off

Sinosteel's bold play for Midwest is paying off

Sinosteel increases its ownership in the Australian iron ore company to 33.8%, as a fall in the local share market makes a competing takeover bid from Murchison less attractive.

By Sameera Anand

June 05, 2008

ChinaÆs Sinosteel informed the Australian Securities Exchange ASX yesterday that it now owns 33.8% of Australian iron ore firm Midwest, up from 28.4% in its previous filing.

SinosteelÆs tactic to trump MurchisonÆs competing all-share reverse merger proposal of one Murchison share for 0.575 Midwest shares is proving a success. Murchison is an Australia-listed company with interests in iron ore mines and infrastructure.

On May 28 Sinosteel decided not to increase its A$6.38 $6.13 per share bid for Midwest any further, calling its offer full and final and suggesting the cash it was offering shareholders provided certainty in volatile markets. And it would seem that shareholders are listening.

The state-owned Chinese steel maker took a further...

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