sinosteels-hostile-bid-in-australia-turns-friendly

Sinosteel's hostile bid in Australia turns friendly

Sinosteel's improved offer of $1.27 billion gains the support of Midwest's board but specialists says China will still have to be cautious when acquiring Australian companies.

By Sameera Anand

May 04, 2008

ChinaÆs Sinosteel has improved its offer for Australian iron ore company Midwest to A$1.36 billion $1.27 billion and succeeded in winning over Midwest's directors. But specialists are guarded in their views on whether this will have any big-picture implications for Chinese MA.

On April 29 Chinese state-owned enterprise Sinosteel hiked its offer to Midwest shareholders to A$6.38 per share. The new price won the approval of the Midwest board of directors and turned the first hostile bid by a Chinese company in Australia into a friendly one. Sinosteel is being advised by JPMorgan.

The new price is a 14% increase over SinosteelÆs earlier offer of A$5.60 per share and a 54% premium to...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222