Midwest to press Sinosteel to back Murchison merger

MELBOURNE, June 6 (Reuters) - Midwest Corp Ltd MIS.AX urged shareholders to back a A$1.44 billion ($1.38 billion) takeover bid from Murchison Metals Ltd (MMX.AX) and said it would press its other suitor and biggest shareholder, Sinosteel, to back the plan.

"Midwest proposes to determine Sinosteel's willingness to support the merger and is hopeful of gaining this support given the significant value creation opportunities," the company said after a board meeting on Friday.

"Given the importance of Sinosteel's vote, Midwest will not enter into the MIA (merger implementation agreement) without first discussing this matter with Sinosteel, nor commit Midwest to the merger without shareholder approval."

Sinosteel, looking for access to Midwest's iron ore, extended its offer for Midwest to July 18 on Friday after increasing its voting stake in Midwest to about 40 percent. It has said it would oppose Murchison's offer.

If Sinosteel gets more than 45 percent it will be in a strong position to block Murchison's takeover proposal, which needs a simple majority of Midwest shareholders' votes cast to secure approval. ($1=A$1.04) (Reporting by Sonali Paul, editing by Mark Bendeich)