Sinosteel Corp is persisting in its takeover bid for Midwest Corporation, extending the bid by a month, as US hedge fund Harbinger Capital increases its hold on the miner.
In a statement to the market, the Chinese steelmaker said the deadline for the offer period will be August 25 as it holds onto a 54.16 per cent interest in the miner.
Sinosteel is offering $6.38 cash for each share with the majority of Midwest's board already accepting the offer.
The Chinese steelmaker is not expected to gain full control of Midwest with three major shareholders understood to be resisting the offer.
Murchison Metals Ltd, which holds 10 per cent, has previously said that it will not accept the Chinese steelmaker's offer while Midwest directors David Dato Law and Datuk Roger Tan, who together hold 13.1 per cent has not indicated whether they will accept the offer.
Meanwhile Harbinger Capital has boosted its stake in Midwest from 15.09 per cent to 16.18 per cent this week.
The US company has been steadily increasing its stake in the miner since last week where it started off with a 9.1 per cent interest.