Shareholder blocks Sinosteel bid for Australian Midwest

A major shareholder of steel company Australian Midwest has blocked a US$1.2 billion acquistion bid from Sinosteel, the South China Morning Post reported. Sinosteel, which has a 4% stake in Australian Midwest from purchases on the open market, has offered Midwest shareholders A$5.60 (US$4.91) per share, a 20% premium from Midwest’s Friday closing at A$4.66 (US$4.09). Midwest shareholder David Law, whose specific amount of shares is not known but who is believed to own anywhere from 14% to 55% of the company, said he is holding out for a higher price. Sinosteel is negotiating with Midwest’s board members and other shareholders for other options. The Chinese steelmaker is planning to raise as much as US$2 billion later this year in an initial public offering to help fund acquisitions and growth.