China's Baosteel, Aurizon offer $1 billion for Aquila Resources

SYDNEY Sun May 4, 2014 7:35pm EDT

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SYDNEY (Reuters) - China's Baoshan Iron and Steel Co Ltd (Baosteel) (600019.SS) and Australia's Aurizon Holdings Ltd (AZJ.AX) launched a A$1.14 billion ($1.06 billion) takeover bid for Australian iron ore developer Aquila Resources Ltd AQA.AX, Aurizon said on Monday.

Baosteel, China's largest listed steelmaker, and rail company Aurizon said they will offer A$3.40 in cash per share, a 39 percent premium to Aquila's last closing price.

Aurizon said it would acquire 15 percent of Aquila if the deal was successful. Baosteel already owns almost 20 percent of Aquila, which is leading the long-delayed $7 billion West Pilbara Iron Ore project in Australia.

(Reporting by Lincoln Feast; Editing by Marguerita Choy)

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