Looks like the $10/t for Mid-West ionr ore price has gone up. The other mid-westers and and iron juniors' real estate values has just hike, again!
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Sinosteel ups stake in Midwest again
* June 5, 2008 - 10:33AM *
Chinese steelmaking giant Sinosteel has increased its stake in takeover target Midwest for the second time in as many days.
In a change in substantial shareholder notice, Sinosteel said it now had a voting stake of 33.82% in Midwest.
Yesterday, Sinosteel said it had raised its stake in Midwest to 28.37%, from about 20% previously.
Sinosteel is vying with Murchison Metals for control of the iron ore miner.
Murchison said earlier today that it was still confident of gaining the necessary approvals for the implementation of its potential merger with Midwest.
"While were are obviously disappointed that a major Midwest shareholder has chosen to accept Sinosteel's offer at substantially below the prevailing market price, as far as we are concerned, we are full steam ahead on the implementation of the merger,'' Murchison chairman Paul Kopejka said.
Sinosteel declared its $6.38-a-share offer final and unconditional last week after Midwest agreed to merge with Murchison to form a $3 billion-plus entity.
Unusually, the target has maintained its recommendation of the Sinosteel offer, while also agreeing to the Murchison proposal based on an "initial assessment''.
Midwest's board has recommended shareholders accept Sinosteel's $1.36 billion takeover offer, which closes on June 13.
Murchison said today that detailed legal and financial work on its proposal was under way.
"As there are no longer conditions to the Sinosteel takeover offer for Midwest, there is now no impediment to the execution of a binding Merger Implementation Agreement (MIA) for the merger between Murchison and Midwest,'' Murchison said.
The formal MIA is expected to be finalised and signed soon, it said.
Work was also advancing on the formal disclosure documents required for the Murchison Scheme of Arrangement.
It was also revealed today that Sinosteel had applied to the Takeovers Panel seeking interim orders preventing entities associated with US investment Harbinger Capital from buying any more Midwest shares.
Sinosteel is claiming that Harbinger's acquisition of a stake in Midwest was in breach of the Foreign Acquisitions and Takeovers Act (FATA).
It also wants Midwest shares acquired in breach of FATA to be vested in the Australian Securities and Investments Commission (ASIC) for sale.
Sinosteel has also complained that inadequate substantial shareholder notices had been issued in relation to Harbinger's investment in Midwest.
MXR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
