Midwest 50:50 on takeover proposals

Midwest Corporation Ltd has told shareholders their response to competing takeover proposals from Murchison Metals Ltd and Sintosteel will depend on whether they have a short-term or long-term investment horizon.

It has advised shareholders with a shorter term horizon they should consider selling on-market or accepting Sinosteel's $6.38 per share offer, which today wa sdecalred unconditional.

Shareholders with a longer-term horizon should consider accepting Murchison's scrip-based merger propsal, which has a higher implied value.

Full announcement below:

UPDATED ADVICE FROM MIDWEST'S DIRECTORS REGARDING SINOSTEEL'S
TAKEOVER OFFER AND MURCHISON'S MERGER PROPOSAL

The Directors of Midwest Corporation Limited (ASX: MIS) (Midwest) welcome Sinosteel's announcement today that it has waived the conditions to its Offer and to the increase of its Offer price of $6.38 per share.

Midwest advises shareholders that Sinosteel's Offer and the merger proposal from Murchison, which has an implied value materially higher than $6.38, are transactions with different risk horizons and completion dates.

If you are a Midwest shareholder with a shorter term investment horizon who may prefer the certainty of cash or are otherwise considering selling your Midwest shares during the Sinosteel Offer period (now extended to 5.00pm WST, 13 June 2008), you should consider either selling your shares on market at prices above Sinosteel's Offer price of $6.38 or, if the market price is below $6.38, accepting Sinosteel's Offer.

If you are a Midwest shareholder with a longer term investment horizon who may want to participate in Midwest's future as a stand-alone company or the potential value creation and rerating of the proposed merged Midwest / Murchison entity, if the Murchison Merger Proposal is successfully implemented, you should consider retaining your Midwest shares.

Shareholders who retain their Midwest shares will also be able to accept a superior proposal if one emerges.

The Directors note that the market's response to the Murchison Merger Proposal has been positive, and Midwest advises that it is currently in discussions with Murchison about implementation issues in relation to Murchison's Merger Proposal. Midwest expects before the end of next week to update the market on the status of those discussions and any major risks or uncertainty with implementation of the Murchison Merger Proposal, and any timeline for its implementation.

Midwest will update shareholders as and when further substantive information becomes available.