China’s Baoshan Iron and Steel’s (Baosteel) $1.4 billion offer for Aquila Resources may prove to be insufficient as Aquila edges closer to agreeing a deal with Mineral Resources.
According to the article on the Australian, the Perth-based company last week announced the acquisition of a 12% stake in Aquila Resources at $3.75 a-share, which puts it in a better position than its rival bidder to gain control over Aquila’s West Pilbara iron ore project.
Baosteel — which has a 20% stake in Aquila — launched a cash only $3.40 a-share offer last month in a joint-venture deal with coal transporter Aurizon. The company confirmed last week that it will not increase its offer, putting Mineral Resources in the front seat to land the target.
Both Aquila and Mineral Resources entered trading halts on Monday ahead of an expected announcement within the next few days regarding a “potential corporate transaction”.