China's Sinosteel closer to controlling Australia's Midwest

0 Comments | AFP, July, 2008

SYDNEY (AFP) — China's Sinosteel was poised on Tuesday to move within striking distance of a controlling stake in Australian iron ore miner Midwest after thwarting a rival offer for the company.

Midwest director Stephen de Belle told the firm Tuesday he would sell his 1.58 percent shareholding to Sinosteel, joining three other directors who have accepted an offer valuing Midwest at 1.36 billion dollars (1.31 billion US).

The directors who have accepted the Chinese firm's 6.38 dollars per share cash offer collectively own 4.08 percent of the company.

That, combined with Sinosteel's existing 45.58 percent shareholding, would give the Chinese steelmaker 49.66 percent of Midwest.

The directors' decision to sell comes after Murchison Metals dropped a...