By Denny Thomas (from reuters.com)SYDNEY, April 3 (Reuters) -...

By Denny Thomas (from reuters.com)

SYDNEY, April 3 (Reuters) - Russian billionaire Alisher Usmanov is looking to sell a 19.5 percent stake in Australian miner Mt Gibson Iron Ore Ltd (MGX.AX: Quote, Profile, Research) in a deal worth up to A$459 million ($421 million), two fund managers who bid for the shares told Reuters on Thursday.

Mt Gibson shares were placed on a trading halt earlier pending an announcement about a transaction in its shares.

Earlier this week, the Australian securities regulator had blocked Chinese steel maker Shougang from acquiring the stake from Gazmetall, a steel firm owned by Usmanov.

Merrill Lynch (MER.N: Quote, Profile, Research) is the sole book runner for the deal. The shares are being offered in range of A$2.60-A$2.93 each, the fund managers said. Mt Gibson shares last traded at A$2.93.

"We have bid for it as we are pretty positive on the iron ore outlook," said one fund manager, who wished not to be indentified. "It will be well bid and I think it will go pretty close to the top of the range," he added.

The final settlement price would be determined after the offer closes at 5:00 p.m. (0600 GMT), the sources said.

full article at http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSSYD9200920080403