Harbinger boosts Midwest stake again

US-based investment fund Harbinger Capital has further increased its stake in takeover target Midwest Corporation Ltd to 12.53 per cent.

In a change of substantial holding notice released today, the US company bought a further 4.3 million shares, or 2 per cent, to boost its interest in the iron ore miner.

It is the second raid on Midwest shares this week by Harbinger, which yesterday lifted its stake from 9.1 per cent to 10.53 per cent.

Harbinger also holds a 19.98 per cent interest in Murchison Metals Ltd, which in turn holds a 10 per cent stake in Midwest.

Murchison has previously stated that it will not accept Sinosteel's $6.38 cash offer, saying that it could extract greater value from its shareholding in Midwest.

Sinosteel currently holds a 52.52 per cent stake in Midwest and the takeover is scheduled to close on July 18.

Meanwhile, over 5.6 million Midwest shares were traded today, above the average traded volume over the past five trading days of about 2.5 million shares.