Harbinger lifts Midwest stake

US based Harbinger Capital has increased its shareholding in Western Australian iron ore miner Midwest Corporation Ltd from 9.1 per cent to 10.53 per cent.

Harbinger's increased stake along with rival miner Murchison Metal's refusal to give up its 10 per cent holding in Midwest will prevent controlling shareholder Sinosteel's wish to build it's stake to 90 per cent and therefore compulsory acquire all remaining shares.

Murchison chief executive Paul Kopejtka has stated that his company can extract greater value from remaining a Midwest shareholder than selling to the state-owned Chinese steel company Sinosteel.

Harbinger Capital is the largest shareholder in Murchison Metals.

On July 11, Sinosteel increased its stake in Midwest from 50.97 per cent to 52.52 per cent.