Good outcome for both MMX and MIS imoWas inevitableMurchinson...

Good outcome for both MMX and MIS imo

Was inevitable


Murchinson makes offer for Midwest
Wednesday October 10, 2007, 10:09 am

Murchison Metals Ltd has made an unconditional takeover offer for iron ore miner Midwest Corporation Ltd.

Murchison is offering a two-tiered offer structure.

The base price offer consists of one Murchison share for every 1.16 Midwest share, valuing Midwest shares at $4.38 and representing a premium of 25 per cent on Tuesday's closing price of both companies' shares.

A higher price will be paid for the target's shares if Midwest does not incur a material tax liability from the potential sale of its 50 per cent stake in its Weld Range and Koolanooka projects to Sinosteel Corporation.

The higher price offer consists of one Murchison share for every 1.08 Midwest share, valuing Midwest shares at $4.70 each and representing a premium of 34 per cent.