Sinosteel extends Midwest takeover offer to Aug 25
HONG KONG, July 25 (Reuters) - Chinese state-owned commodities trading house Sinosteel has extended its offer for shares in Australian iron ore prospector Midwest Corp MIS.AX by a month to Aug. 25, it said in a regulatory filing on Friday.
Sinosteel's offer of A$6.38 per share has already clinched majority control of Midwest, with a holding of 54.16 percent.
The A$1.36 billion ($1.3 billion) Chinese bid defeated a rival merger plan by Midwest's neighbouring miner, Murchison Metals Ltd (MMX.AX), which is backed by Japan's Mitsubishi Corp (8058.T).
U.S. hedge fund Harbinger Capital, the top shareholder in Murchison and a vocal supporter of its foiled plan to merge with Midwest, has continued buying shares in Midwest after Sinosteel gained a majority stake.
Harbinger said on Wednesday it had increased its stake in Midwest by 1 percent to 16.18 percent. Murchison also owns 10 percent and Midwest director David Law has 13 percent.
Sinosteel would need 90 percent in order to force minority shareholders to sell.
Murchison and Midwest are trying to develop iron ore mines in the Yilgarn region of Western Australia, where the ore was considered unprofitable to mine until prices started soaring in recent years to feed China's construction boom.
Sinosteel was advised by JP Morgan on what was China's first successful hostile takeover overseas. Morgan Stanley organised Midwest's defence. ($1=1.03 Australian Dollar)
