Sinosteel bids for Australian miner

SYDNEY, Dec 7, 2007 (AFP) - Australian iron ore miner Midwest Corporation said Friday it had received a 1.19 billion (1.03 billion US) dollar takeover bid from Sinosteel Corporation of China.

Midwest said the cash offer was worth 5.60 dollars a share, exceeding an earlier bid by fellow iron ore miner Murchison Metals that valued the company at about 769 million dollars.

Midwest said Sinosteel's offer was incomplete, non-binding, and subject to due diligence and several other conditions.

"There is no certainty that this proposal will lead to a transaction," Midwest said in a statement.

Midwest's shares were suspended from trading Friday afternoon on the company's request pending the release of an announcement.

Midwest has a joint venture agreement with Sinosteel to share the exploration and development costs of its Weld Range Haematite and Koolanooka Magnetite projects in the midwest region of Western Australia.

Local media reports also suggest Fortescue Metals Group and Gindalbie Metals are in takeover talks with Midwest. Fortescue and Gindalbie Metals Ltd have issued separate statements denying the reports.

Midwest last month rejected a takeover offer from fellow iron ore miner Murchison Metals.

It said the offer of one Murchison share for every 1.08 Midwest shares undervalued it.

Midwest last traded at 4.85 dollars, up 10 cents or 2.1 percent.