Sinosteel outbid in Midwest Corp deal
27 May 2008
A bid by Sinosteel, China's second-largest iron ore trader, to purchase Australian mining group Midwest Corp was trumped by a higher-value offer from Midwest rival Murchison Metals, the South China Morning Post reported. Murchison's all-share offer is valued at US$1.47 billion, 12% higher than Sinosteel's US$1.3 billion all-cash bid. Sinosteel had raised its bid by 14% in April after Midwest's management rejected its initial offer. Sinosteel owns stakes in both Midwest and Murchison. In a statement, Sinosteel said its all-cash offer remained superior. In addition to the Midwest bid, the Chinese firm is also considering an 8% stake in Austrialian resources start-up Fortescue Metals.