China's Sinosteel Sticking With Midwest Bid

May 2008 | M&A News Alert

Chinese steelmaker Sinosteel has said that they will not increase their AUD1.36bn (US$1.31bn) bid for Australian mining company Midwest, despite a rival takeover approach by Australia's Murchison Metals. Murchison has out-bid Sinosteel's cash offer of AUD6.38 per share with an offer of one Murchison share for every 0.575 Midwest share, representing an offer of AUD7.17 per share. Sinosteel President Tianwen Huang wrote to the Australian Securities Exchange (ASX) making their firm stance clear: 'our offer price is now final and AUD6.38 per share is the maximum we are willing to pay'.

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