Australia's Murchison scotches Sinosteel takeover rumours

0 Comments | AFP, May, 2008

SYDNEY (AFP) — Australian iron ore miner Murchison Metals denied it was in takeover talks with Sinosteel Thursday amid market rumours it was the next resources firm on the Chinese state-owned giant's shopping list.

Murchison revealed last Tuesday that Sinosteel had acquired 2.4 percent of its shares, the same day rival miner Midwest accepted a 1.36 billion dollars (1.27 billion US) takeover bid from China's second largest steel firm.

News of Sinosteel's stake caused a 21 percent spike in Murchison's share price, fuelling speculation that the Chinese could be lining up a new takeover target.

But Murchison, responding to a query from the Australian Securities Exchange, said it had not been contacted by Sinosteel.

"The company has not been contacted by,...