Australian mining company Midwest Corporation Limited (Midwest) has announced that China's state-owned steelmaker Sinosteel Corporation (Sinosteel) now holds over a 10 percent stake in Midwest, having sharply increased its interest in the company; however, the Australian miner added that the Chinese company currently has no intentions to make a takeover offer.
Midwest said that Sinosteel has bought shares in the market at AU$5.30 (US$4.66) each. In December 2007, Sinosteel proposed a takeover offer for Midwest worth around US$1 billion, but the parties did not reach any subsequent agreement on a deal.
In November 2007, Midwest had received a US$882 million takeover bid from rival Australian miner Murchison Metals Ltd (Murchison), which it rejected.
This week, Murchison extended its takeover offer for Midwest until next month.
Sinosteel's iron ore offtake agreement with Midwest would be in jeopardy if Murchison, backed by Japanese company Mitsubishi, succeeds in its takeover offer.