confusion, page-2

Yep, the Australian has changed its wording. See revised below.

Fortescue-Hunan Valin $1.2bn pact to get China approval

John Durie | April 16, 2009

Article from: The Australian

CHINA will shortly approve Hunan Valin's $1.2 billion equity injection in Fortescue metals.

The pact between Fortescue Metals and Hunan Valin will be formally agreed to in an official ceremony in China on Sunday.

Confirmation of the deal comes after reports that the Chinese Government was delaying formal approval to send a message to Canberra over future deals like Chinalco’s joint venture plan with Rio.

Hunan Valin will control just under 18 per cent of Fortescue.

Fortescue’s stock price was 3.3 per cent higher at $2.51 a share today.

The NDRC, which is one body whose official approval is needed, had taken longer than expected - apparently to pass the message to Canberra - but all is on-track for the official signing ceremony at the Boao Fourm on Hainan Island on Sunday.

The Boao Forum is an Asian version of the World Economic Forum and will hold its annual meeting over the next three days. The gathering will feature a list of high-profile attendees, including Chinese Premier Wen Jiabao.

Australian Agriculture Minister Tony Burke, among others, will attend the forum, along with former prime minister Bob Hawke, who was one of the forum’s founders.

Fortescue’s Andrew Forrest will speak at the forum, which will serve as the perfect setting to launch the $1.2 billion deal, given Hawke is on a Fortescue advisory council and no doubt helped play marriage broker on the deal for an appropriate fee.

The Chinese approval will come ahead of Rio Tinto’s second-round annual meeting in Sydney on Monday, at which the Chinalco proposal will come under more fire.