Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (20702)	6/2/2008 10:53:27 AM
From: LoneClone	Read Replies (1) \| Respond to of 194794

Sinosteel Sweetens Midwest Offer by Dropping Key Condition By Ginger Ding 30 May 2008 at 09:32 AM GMT-04:00 resourceinvestor.com SHANGHAI (Interfax-China) -- Sinosteel Corp. [SHE:000928], the largest iron ore trader in China, today dropped a key condition on its AUD 6.38 ($6.09) per-share cash offer for shares in Western Australian iron ore miner Midwest Corp. Ltd. [ASX:MIS], upping the stakes in its battle against rival bidder Murchison Metals Ltd. [ASX:MMX]. Sinosteel had previously offered AUD 6.38 ($6.09) per share on the condition that a minimum of 50.1% of Midwest shareholders approved the deal. Now, shareholders can sell their stake in Midwest to Sinosteel without regard to the minimum approval level. The Chinese trader's stake in Midwest has been growing in recent weeks, rising from 19.89% as of April 1 to 20.58% today. "Sinosteel's move to make its offer unconditional may be aimed at helping it to gradually increase its stake in Midwest. It is a long-term goal of Sinosteel to increase its voice in Midwest. It has already raised its voting power in the company above 20%," analyst Yu Liangui, with Mysteel Information, told Interfax. Midwest shares inched up 0.28% yesterday to close at AUD 7.06 ($6.74) on the Australian Stock Exchange, some 10.66% above Sinosteel's current offer. Sinosteel's rival bidder Murchison has proposed a Midwest-Murchison merger, with terms of 0.575 Midwest shares for every Murchison share. The deal values Midwest at AUD 7.17 ($6.85) per share, based on Murchison's five-day weighted average price prior to the release of the proposal on May 26. Murchison shares on the ASX jumped 9.65% to AUD 4.43 ($4.23) on May 26. They closed at AUD 4.15 ($3.96) yesterday, up 0.24% from the previous trading day. Both Midwest and Murchison are iron ore mining companies based in the Pilbara region of Western Australian. © Interfax-China 2008. For more intelligence on Chinese metals and mining, contact David Harman in Hong Kong at david.harman@interfax-news.com.