Harbinger lifts Midwest stake to 15%

United States investment firm Harbinger Capital has further increased its stake in Midwest Corporation Ltd, following a raid on over 5.4 million shares yesterday.

It's the third share raid in as many days by the US company which now holds 15.09 per cent of Midwest shares, up from 9.1 per cent of shares it held at the start of the week.

Shares bought by Harbinger yesterday were priced between $6.40 and $6.52, higher than Sinosteel Corp's takeover offer of $6.38 cash for each Midwest share.

Sinosteel currently holds majority control of Midwest with a stake of 52.52 per cent, however it will not gain full control of the company with Murchison Metals Ltd vowing to not accept the Chinese steelmaker's offer with its 10 per cent holding.

It is also unclear whether Midwest directors David Dato Law and Datuk Roger Tan, who together hold 13.1 per cent in Midwest, will accept Sinosteel's offer.

Last week four Midwest directors including chairman Jesse Taylor indicated they would accept Sinosteel's takeover offer, which is scheduled to close at the end of this week.