SYDNEY (AFP) – China’s Sinosteel was poised on Tuesday to move within striking distance of a controlling stake in Australian iron ore miner Midwest after thwarting a rival offer for the company.

Midwest director Stephen de Belle told the firm Tuesday he would sell his 1.58 percent shareholding to Sinosteel, joining three other directors who have accepted an offer valuing Midwest at 1.36 billion dollars (1.31 billion US).
The directors who have accepted the Chinese firm’s 6.38 dollars per share cash offer collectively own 4.08 percent of the company.
That, combined with Sinosteel’s existing 45.58 percent shareholding, would give the Chinese steelmaker 49.66 percent of Midwest.
The directors’ decision to sell comes after Murchison Metals dropped a rival merger offer Monday when talks with Sinosteel over the weekend failed to convince the Chinese to back its proposal.
In turn, Murchison said it would not sell its 10 percent stake in Midwest to Sinosteel, instead preferring to hold on to the shares and “play an active role in Midwest.”
Midwest has advised shareholders to accept Sinosteel’s offer or sell at more than 6.38 dollars if the price is available on the market.
It said shareholders who retained the stock after Sinosteel’s offer closes on July 18 should have a long-term investment horizon.
Murchison shares were down 14 cents or 4.8 percent at 2.93 dollars about midday in an overall market that was up slightly, while Midwest was unchanged at 6.38.