sinosteels-bid-for-midwest-turns-hostile

Sinosteel's bid for Midwest turns hostile

ChinaÆs Sinosteel takes its $1.12 billion offer for the Australian mining company direct to shareholders in a deal that reflects China's hunger to secure raw materials.
ChinaÆs Sinosteel is offering Midwest shareholders A$5.60 per share in the first hostile bid by a Chinese company in Australia. At that price, it is placing an equity value of A$1.2 billion $1.12 billion on the Australian iron ore company. SinosteelÆs bid for Midwest has been approved by AustraliaÆs Foreign Investment Review Board.

The offer price represents a 35% premium to the last traded price of Midwest on March 13 and an 80% premium to the volume-weighted average price for the one-month period prior to the bid for Midwest by Murchison Metals. Export-Import Bank of China will be providing the debt to fund SinosteelÆs offer.

Significantly, SinosteelÆs offer is not subject to customary due diligence....
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