[SIZE="4"]Standby for the shock and ore[/SIZE]
SMH wrote:
WHAT happens when small to middling iron ore companies in the remote wilds of Western Australia get into a hostile takeover wrangle? The only answer at this stage is that you hold on and try to enjoy the ride. Most readers probably know little or nothing about Murchison Metals or its fresh takeover target, Midwest Corp. They are both smallish iron ore producers that have now locked horns in a hostile bid.
Murchison has the backing of the Japanese giant Mitsubishi, and Midwest is in bed with China's Sinosteel. The Japanese and the Chinese both want to get a piece of the action in this highly prospective area of Western Australia, which has plenty of potential to supply iron ore down the track. But there is another element to this battle between the giants and the minnows, and this is all about infrastructure.
The iron ore producers do not have viable resources unless they can get the resources onto a rail line and to port for overseas export. And right now the West Australian Government has put the building of a port out to tender.
Both Midwest and Murchison have put up their hands. Midwest has hitched its infrastructure wagon to a company called Yilgarn, which has the backing of Chinese interests and has agreed to be a cornerstone customer.
. . . The second aspect to this situation is that it seems abundantly clear these two companies should get together. Despite backing from some of the biggest offshore boys in the business, the fact remains that their projects are pretty close to each other and there are doubtless synergies in exploration, development and transport . . . more
