17/07/2008 - 17:06

Midwest directors net $60m from offer

17/07/2008 - 17:06

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Four Midwest Corporation Ltd directors have cashed in nearly $60 million worth of shares after accepting Sinosteel Corp's offer, while the Chinese steelmaker keeps quiet on whether it will extend its takeover deadline, due to expire tomorrow.

Midwest directors net $60m from offer

Four Midwest Corporation Ltd directors have cashed in nearly $60 million worth of shares after accepting Sinosteel Corp's offer, while the Chinese steelmaker keeps quiet on whether it will extend its takeover deadline, due to expire tomorrow.

In announcement to the market, chairman Jesse Taylor and directors Francis Ng, Steven Chong and Stephen de Belle relinquished their holding of over 9.35 million shares.

It follows an earlier announcement made by Sinosteel which increased its Midwest stake from 52.52 per cent to 54.01 per cent.

The increase is dwarfed by this week's share raids by US investment firm Harbinger Capital, which boosted its stake in Midwest from 9.1 per cent to 15.09 per cent.

Sinosteel is currently offering $6.38 cash for each Midwest share.

The Chinese steelmaker is not expected to gain full control of Midwest 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.

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