hang on

A financial analyst says shareholders in Midwest Corporation would be wise not to immediately accept an offer made by a Chinese steel company to take over the West Australian junior miner.

Sinosteel has approached shareholders directly and offered them five dollars 60 per share.

In a statement to the stock exchange Midwest has told shareholders not to respond.

James Wilson from D J Carmichael says it's a good deal but there could be better developments in the future.

"At the moment you know the deal represents a pretty good deal for shareholders in a market that's on its way down and do we know how far it's going to go? we're not sure and when somebody is offering you premium for your company it's a pretty good deal."