16/09/2008 - 09:09

Harbinger accepts Sinosteel offer

16/09/2008 - 09:09

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The last major hurdle for full control of iron ore miner Midwest Corporation Ltd has fallen as US investment bank Harbinger Capital pockets $224 million from Sinosteel's takeover offer.

Harbinger accepts Sinosteel offer

The last major hurdle for full control of iron ore miner Midwest Corporation Ltd has fallen as US investment bank Harbinger Capital pockets $224 million from Sinosteel's takeover offer.

In an announcement earlier today, Harbinger advised the market it had ceased to be a substantial shareholder in Midwest, taking Sinosteel's stake in the iron ore miner to 98.52 per cent.

Harbinger had held a 15.2 per cent stake and was the last hurdle for Sinosteel's takeover of Midwest, with major shareholder and former director David Law accepting the deal yesterday.

Sinosteel's takeover bid, which was offering $6.38 cash for each share, ended last night.

Harbinger's acceptance ends a tumultuous past year for Midwest, which fought takeover bids from both Murchison Metals Ltd and Sinosteel, agreed to a merger deal with Murchison and finally recommended the takeover by Sinosteel.

It is understood Sinosteel will move to acquire the remaining shares in Midwest it does not already own.

Midwest has now been placed in a trading halt with shares last trading at $6.36.

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