Sinosteel increases stake in Australia's Midwest

SYDNEY — China's Sinosteel said Friday it had lifted its stake in Australian iron ore miner Midwest to 40.09 percent as it bids to overcome a rival offer for its takeover target.

Sinosteel has doubled its holding in Midwest this week following its 6.38 dollars per share cash offer, which values Midwest at 1.36 billion dollars (1.31 billion US).

Murchison Metals has launched a rival all-share bid, which values Midwest at 1.5 billion dollars, but Sinosteel has previously said it believes investors will prefer the certainty of cash.

Midwest's board has unanimously recommended the Murchison bid, while maintaining a recommendation for the Sinosteel.

Both Midwest and Murchison own iron ore projects in Western Australia, which require rail and port infrastructure for their potential to be realised.

(AFP)