China’s Sinosteel Corp has launched a hostile, all-cash offer for Australian iron ore prospector Midwest Corp in a deal that values Midwest at A$1.2bn ($1.1bn), as it aims to lock up scarce iron ore supplies, reports Reuters. The offer, the first hostile approach by a Chinese firm in Australia’s mining sector, was pitched at A$5.60 a share, a 35% premium to Midwest’s close on Thursday. Midwest shares surged more than 31% to A$5.48 a share on Friday. Sinosteel, a steel commodities trader, already owns 19.9% of Midwest and is a partner in one of Midwest’s ore prospects.

This entry was posted by Gwen Robinson on Friday, March 14th, 2008 at 5:41 and is filed under Capital markets, M&A. Tagged with Midwest, Sinosteel. Edit this entry.