Sinosteel goes hostile for MidWest to get set in Iron...

Sinosteel goes hostile for MidWest to get set in Iron Ore.

Midwest was a Flinders not so long ago...

Bring it on....

SYDNEY, March 14 (Reuters) - Chinese commodities trader
Sinosteel is preparing a A$1.2 billion ($1.1 billion) hostile bid
for Australian iron ore prospector Midwest Corp , the
Australian Financial Review said on Friday.
Citing no sources, the business daily said the bid would be
the first hostile offer for an Australian company by a Chinese
entity. It said the bid would likely be at around A$5.60 a
shares. Midwest shares closed at A$4.15 on Thursday.
A takeover would give Sinosteel, which holds 18.7 percent of
Midwest, access to the iron ore deposits of western Australia's
midwest region at a time of soaring demand from Chinese users of
the material.
The reported bid would be at the same price as an earlier
takeover proposal by Sinosteel that Midwest rejected in February.
The Australian company said rising iron ore prices meant that the
offer was too low.
Midwest had also rejected an earlier merger proposal from
fellow Australian prospector Murchison Metals Ltd .
Midwest said in a statement on Thursday that it was "not
aware of any party expected to make a takeover offer for Midwest
now or in the future."
It added that it had given Sinosteel access to its books, but
the Chinese firm had not agreed to commercial requirements for
conducting due diligence.
The Australian Financial Review said Sinosteel already has
Australian government approval for the proposed bid.
(Reporting by Jonathan Standing)
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