sinosteels-hostile-bid-in-australia-turns-friendly

Sinosteel's hostile bid in Australia turns friendly

Sinosteel's improved offer of $1.27 billion gains the support of Midwest's board but specialists says China will still have to be cautious when acquiring Australian companies.
ChinaÆs Sinosteel has improved its offer for Australian iron ore company Midwest to A$1.36 billion $1.27 billion and succeeded in winning over Midwest's directors. But specialists are guarded in their views on whether this will have any big-picture implications for Chinese MA.

On April 29 Chinese state-owned enterprise Sinosteel hiked its offer to Midwest shareholders to A$6.38 per share. The new price won the approval of the Midwest board of directors and turned the first hostile bid by a Chinese company in Australia into a friendly one. Sinosteel is being advised by JPMorgan.

The new price is a 14% increase over SinosteelÆs earlier offer of A$5.60 per share and a 54% premium to...
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