MIS - Midwest Corporation

Source:CNNMoney.com Put in murchison metals into google. Came up with this

Australian shares close higher led by BHP Billiton; index at record - UPDATE
September 25, 2007: 03:25 AM EST

Emerging iron ore miner Murchison Metals (OOTC:MUMTF) surged 28 cents or 6.2 percent to 4.79 on talk it might merge with Midwest Corp, another iron ore company. Midwest rose 16 cents or 5.2 percent to 3.26 dollars. Both companies hope to develop iron ore projects in the mid-west region of Western Australia.

Any one else heard this? Makes huge sense for MMX. Takes the WA Gov out of play. But the two aren't friendly after MIS ditched MMX on rail/port in the first place.

I hope you are right about the takeover. There was some big buying today..... This may well be it. I have bought in.

hookon said:

Source:CNNMoney.com Put in murchison metals into google. Came up with this

Australian shares close higher led by BHP Billiton; index at record - UPDATE
September 25, 2007: 03:25 AM EST

Emerging iron ore miner Murchison Metals (OOTC:MUMTF) surged 28 cents or 6.2 percent to 4.79 on talk it might merge with Midwest Corp, another iron ore company. Midwest rose 16 cents or 5.2 percent to 3.26 dollars. Both companies hope to develop iron ore projects in the mid-west region of Western Australia.

Any one else heard this? Makes huge sense for MMX. Takes the WA Gov out of play. But the two aren't friendly after MIS ditched MMX on rail/port in the first place.

Click to expand...

The offer has been put on ASX at 9.33am this morning. It was mentioned on ABC news last night as well.

Held MIS since Jan 2005

ASX ANN today
10/10/2007 MMX: Takeover Offer for Midwest Corporation
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00768186

TAKEOVER OFFER FOR MIDWEST CORPORATION LIMITED
Highlights:
• Unconditional offer
• Substantial premium via two tier offer structure
• Compelling financial and strategic logic
• Combined Stage 1 projects with planned production of 4mtpa in 2008
• Combined Stage 2 projects with targeted iron ore production of 45mtpa
• Potential for superior value creation through synergies and optimised project
development
____________________________________________________
Perth, Western Australia, 10 October 2007 – Murchison Metals Limited (“Murchison”) announces its intention to make an unconditional takeover offer to acquire all of the shares in Midwest Corporation Limited (“Midwest”).

Murchison believes that the combination of Murchison and Midwest represents a unique opportunity to unlock cost and revenue synergies, accelerate the development of the emerging mid-west iron ore province and provide greater certainty for the development of new mid-west port and rail infrastructure.

Murchison believes the proposed offer is compelling. Midwest shareholders will benefit from an immediate uplift in the value of their investment in Midwest and will also share in the value that Murchison believes will be created if Midwest and Murchison jointly develop the Jack Hill’s and Weld Range projects. These are highly complementary projects with similar ore types, located in the same geographic region and relying on the same rail and port infrastructure.

Under a ‘two-tiered’ offer structure, Murchison is offering a higher price for Midwest shares if Murchison is reasonably satisfied, prior to the end of the offer period, that Midwest will not incur a material tax liability if Midwest sells a 50% interest in the Weld Range and Koolanooka projects to Sinosteel Corporation.

The Base Price offered by Murchison is 1 new Murchison share for every 1.16 Midwest shares held (the “Base Price”).

The Base Price values your Midwest shares at $4.38 each and represents a premium of 25% based on the closing price of Midwest shares and Murchison shares on 9 October 2007.

The Higher Price is 1 new Murchison shares for every 1.08 Midwest shares held (the “Higher Price”).

The Higher Price values your Midwest shares at $4.70 each and represents a premium of 34% based on the closing price of Midwest shares and Murchison shares on 9 October 2007.

The Higher Price will be paid if Midwest provides information so that Murchison is reasonably satisfied that Midwest will not incur a material tax liability if Midwest sells a 50% interest in certain of Midwest’s projects to Sinosteel Corporation.

Re: MIS - MIDWEST CORPORATION LIMITED

wipz said:

I have been hearing talk about a possible merger that should be announced soon, anyone else been hearing the same thing?

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I should have got in!!!!! oh well its too late now, good luck to all holders, should be a nice ride!!!!!

WIpz I will certaintly take more interest in your posts in the future!

Suprised you didnt get into MIS !!

From last Thursday 11th Oct.

The market has applauded the deal by sending both share prices higher. But Merrill Lynch analyst Mike Harrowell said it was difficult to value either company, given neither had proven there were enough resources to underwrite the infrastructure development.

Midwest has 114 million tonnes of hematite resources at a grade of 58.7 per cent at its Weld Range project. Murchison's Jack Hills project has a historical resource of 380 million tonnes at 62 per cent iron.

But under modern standards, Murchison has so far only proven up 50.5 million tonnes at 60.7 per cent iron and 46.5 million tonnes at 42.6 per cent iron. China overtook Japan as the world's largest buyer of iron ore in 2003, and its rising demand has led to a fight for Australian mines.

Murchison, which gained 2 per cent on Wednesday after the bid was announced, rose a further 6 per cent yesterday to $5.49. Its stock was at 75 ¢ a year ago. Midwest, also based in Perth, gained 42 ¢ yesterday, or 9.4 per cent, to $4.90.

Murchison's rising price brings the value of its all-stock bid to as much as $1.07 billion.

'Overvalued' but Midwest deflects bid'

Jamie Freed
October 25, 2007

http://www.smh.com.au/news/business/overvalued-but-midwest-deflects-bid/2007/10/24/1192941153451.html

MIDWEST'S chief executive, Bryan Oliver, has said his company is "probably overvalued" on the basis of its current iron-ore resources, even though it is trying to deflect a hostile bid from its rival, Murchison Metals.

The Midwest board has not recommended that shareholders accept Murchison's scrip offer, since it thinks it has the potential to prove more value in the future.

"On expectation going forward possibly [we're undervalued]," Mr Oliver told media in his first public comments since Murchison lodged its bid two weeks ago. "Relative to the Murchison bid on price it would appear to me we are undervalued."

Under Murchison's offer, Midwest shareholders would own about one-third of the combined group. UBS estimates the two, which have neighbouring iron-ore deposits in the mid-west region of Western Australia, could save up to $400 million of costs through a merger.

Midwest has proven more iron-ore resources than Murchison. But Murchison has more ambitious development plans in concert with its joint venture partner, Mitsubishi of Japan. Murchison's share register is dominated by institutions, while at least one-third of Midwest shares are held by Malaysian interests.

An Ord Minnett analyst, Peter Arden, said Mr Oliver was a strong mining operator, but Murchison had a first-rate management team with more extensive corporate experience. "You've got to be strong on the corporate side," Mr Arden said. "You've got to be able to raise money. You've got to make big deals."

He noted that Mr Oliver was not a member of Midwest's board, which is dominated by representatives of its main shareholders. "He's sort of a hired gun, not perhaps on the complete inside," Mr Arden said. "It is odd. But that's the way Midwest has operated for quite a while."

In a letter to Midwest shareholders last week, Murchison attributed its higher market valuation to its joint venture with Mitsubishi, support from institutional investors and the strength of its management team.

Mr Oliver said his management team had "essentially a conservative approach" since it preferred to deliver on achievable forecasts.

Chief Wigam said:

From last Thursday 11th Oct.

The market has applauded the deal by sending both share prices higher. But Merrill Lynch analyst Mike Harrowell said it was difficult to value either company, given neither had proven there were enough resources to underwrite the infrastructure development.

Midwest has 114 million tonnes of hematite resources at a grade of 58.7 per cent at its Weld Range project. Murchison's Jack Hills project has a historical resource of 380 million tonnes at 62 per cent iron.

But under modern standards, Murchison has so far only proven up 50.5 million tonnes at 60.7 per cent iron and 46.5 million tonnes at 42.6 per cent iron. China overtook Japan as the world's largest buyer of iron ore in 2003, and its rising demand has led to a fight for Australian mines.

Murchison, which gained 2 per cent on Wednesday after the bid was announced, rose a further 6 per cent yesterday to $5.49. Its stock was at 75 ¢ a year ago. Midwest, also based in Perth, gained 42 ¢ yesterday, or 9.4 per cent, to $4.90.

Murchison's rising price brings the value of its all-stock bid to as much as $1.07 billion.

Click to expand...

Hi interesting thx

MIS - Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 1.2 -3.1 13.3 23.9
DPS 0.0 0.0 0.0 0.0

MMX - Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS -13.7 0.7 4.5 --
DPS 0.0 0.0 0.0 --

thx

MS

The market is speculating there will be an increased offer from MMX.

Hence the surge in share price and volume today.

Here is an excerpt from the Iron Ore thread from Rudi On Thursday
FN Arena News - October 17 2007

Because of the importance of scale, and of infrastructure, most medium sized companies will find it hard to become a mini-Fortescue. A logical way out is thus to join forces. That’s why Murchison Metals ((MMX)) in the mid-west region of Western Australia is trying to buy neighbour Midwest Corp ((MIS)). It is a public secret that both management teams tried to work out a friendly merger earlier this year, but that went nowhere.

Analysts believe Murchison’s offer might ultimately be successful, simply because the advantages of a combined entity (larger scale, relatively less investments to reach the same goals, twice) look so compelling.
UBS initiated coverage this morning with a Buy for each of the separate entities. Keep in mind that the key factor in this story is that both companies need the development of new rail and port infrastructure for their growth prospects.

UBS, and others, believe the sum of both is poised to turn out larger than two. For starters, the analysts foresee up to $400m in savings simply by sharing infrastructure and equipment.

The broker has placed a target price of $6.50 on shares of Murchison, but regular readers of our daily Australian Broker Call will know already that Merrill Lynch has held a $7 target for the stock for a while now.
UBS’s target for Midwest is $5.90.

Anyone got any idea what is going on with MIS and their trading halt? MIS seems to be the star performer at the moment while MMX fades (I hold MMX). Are the Chinese swooping???

http://www.wabusinessnews.com.au/en...inosteel-proposes-1-19b-Midwest-takeover-/dba

Sinosteel proposes $1.19b Midwest takeover
7-December-07 by Jenelle Carter

Chinese steelmaker Sinosteel is proposing a cash takeover offer for iron ore miner Midwest Corporation Ltd that values the target at $5.60 per share, well above Murchison Metals Ltd's floundering scrip offer.

Sinosteel's move will shore up its strategic interest in the Mid West iron ore province, and follows its work with Midwest Corp on the joint venture development of iron ore mines in the region.

Midwest said there was no certainty that the Sinosteel proposal would lead to a transaction.

Murchison will be forced to substantially improve the value of its scrip offer if it wants to have any chance of acquiring Midwest.

Based on Murchison's closing share price today of $3.91, its offer values Midwest at $3.62 per share.

The two companies hold adjacent tenements and have been developing competing plans for rail and port infrastructure.

Shares in Midwest were trading at $4.85 when the company called a trading halt today, taking its gains over the past three days to 84 cents or 21 per cent.

The Murchison announcement followed denials earlier today by Gindalbie Metals Ltd, which denied it was in discussions with Midwest regarding a potential takeover, and Fortescue Metals Group Ltd, which denied it had acquired a shareholding in Midwest.

Recent media reports suggested that Gindalbie, along with Sinosteel, were two of the parties Midwest was referring to yesterday when it revealed that it was in discussions with "parties interested in pursuing corporate transactions".

Gindalbie also rejected today a media claim that its Karara Iron Ore Project was dependent upon the railway and port infrastructure proposed for Oakajee.

"Gindalbie seeks to clarify to the market that it is not in discussions with Midwest Corporation Limited regarding a takeover proposal, and further that Gindalbie's stage 1 development of the Karara Iron Ore Project is not dependent upon the development of Oakajee or its related infrastructure," it said in a statement.

Fortescue said in a statement it refuted any suggestion that it had acquired an interest in Midwest and remained totally focused on its iron ore and infrastructure project in the Pilbara.


ASX ANN not long after last posting

07-12-2007 06:03 PM MIS Midwest in Discussions with Sinosteel
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00793278

ASX ANNOUNCEMENT – MIDWEST IN DISCUSSIONS WITH SINOSTEEL Following speculation in the market, Midwest Corporation Limited (ASX:MIS) confirms it has received a proposal from Sinosteel Corporation to acquire all of the issued capital in Midwest.

The proposal is for $5.60 cash per Midwest share and is incomplete, non-binding, subject to due diligence and a number of other conditions. There is no certainty that this proposal will lead to a transaction.

The Board of Midwest continues to recommend shareholders to take NO ACTION in relation to Murchison's offer.

Hi happy people - Question time

I am an MMX holder wanting to know the views of mis holders.

Current offer from MMX tanking big time. As of friday 1.6million shares taken up in offer of 206 million (approx figures).

Sinosteel has now pledged an offer yet with no basis except maybe to encourage mmx to lift there offer as expected. MMX now playin abit of hard ball & not sucked into the initail price offer (Yet).

Two Things.

1. If MIS was just trying for a better price through sinosteel why not just say to mmx we want x amount per share. Shorely mmx would go shore we will pay that as long as u agree. so is this a guenuie offer or a bluff? Opinions please.

2. what are looking for as an MIS holder. If you are just after pure profit ie. 5.60 is your sell price then you take sinosteel. if you do this ounce it is over you are out of the iron ore game. Cashed up but gone.
if you are after long term interests & profits you would take MMX. This way you still hold shares of a company with big upside & stay in iron ore. hopefully as joint company it would surpass 5.60 & therefore a better offer.

I want to know who would prefer shares in joint iron ore coy vs cash/

ASX ANN
17/12/2007 TOV: Takeovers Panel decision re Midwest Corporation
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00795890

Friday, 14 December 2007
Midwest Corporation Limited – Panel Decision

The Panel advises that it has decided not to make a declaration of unacceptable circumstances in response to an application dated 8 November 2007 from Midwest Corporation Limited. The application concerned the unconditional scrip takeover offer for all of the Applicant’s shares by MMX Investments Pty Ltd, a wholly owned subsidiary of Murchison Metals Limited (together Murchison). (See TP07-91)

Midwest had sought a declaration of unacceptable circumstances in relation to deficiencies which it submitted existed in Murchison’s bidder’s statement and first supplementary bidder’s statement (collectively, the Bidder’s Statement).

Midwest submitted that the Bidder’s Statement should contain evidence that Murchison had a reasonable basis for a number of statements in relation to targeted iron ore production at the Jack Hills project (in which Murchison has a 50% interest through an incorporated joint venture with a subsidiary of Mitsubishi Development Pty Ltd).

Well I believe when that monkey dato law runs out of company shares & oppies to keep stealing to give to himself they will bring in this guy who is totally low maintenance,is prepared to be paid in soft commodities unlike all of the mis monkeys on the board busy paying $30,000 for $970,000 worth of oppies by lowering the oppies from 40c to 15c.dead set this guy would do a better job than dato law,& he only wants long yellow things...

Hes also in charge of the takeover panels who now have the sino $5.66 deal on the table as of 5 minutes ago,you watch this monkey dato law,who is dead set holding mis to ransom for $7.00 a share so that hegets his hairy hands on the oppies he gave himself,whats the odds he takes the offer then changes the oppies to $5.66???at the moment they havent a railway & only drilled up 133mt with a minimum 225mt to be commercial,as i predicted elsewhere:I dont wish any harm on mis holders BUT this is australian resources being stolen from us full stop,if the hedgies get a sniff of this one i will ride that **** LAW into the pilbara dust,fcking monkey the W.A. government stand condemned for their inaction,this **** is just holding the shareholders to ransom & what is needed to get sino up is for sino together with the next big hitters on the top 20, is an extraordinary meeting,i believe he law holds effectively 40% even if it did not get up,it will flush out his complete voting % for all to see,then asic could step in (finally the pea hearts)to get this monkeys % flushed out at the meeting,sino need to play hard ball with this **** as if no sino then i dont see the W.A. government whacking in for the railway, also id say dont discount mmx coming back into the picture in the future,here is mis anns.in response to the afr story:

ASX ANNOUNCEMENT
MIDWEST AND MEDIA COMMENT
Midwest Corporation Limited (�Midwest�) notes recent media coverage and speculation regarding
appropriate disclosure to the ASX and make the following comments:
1) Midwest is not aware of any party expected to make a takeover offer for Midwest now or in
the future.
2) The Australian Financial Review (�AFR�) on 12 March 2008 draws inferences from the fact
that separate shareholders have sent their substantial shareholder notices from the same
fax machine in a lawyer's office. Midwest is aware of the principals behind the majority of
its major shareholders including the substantial shareholders. These individuals are legally
entitled to privacy. Based on information available to Midwest there is nothing to support
the inferences of the AFR.
3) Regarding a statement in the AFR (12 March 2008) that �Sinosteel was denied the chance
to conduct due diligence�, Midwest notes its ASX release on 19 December 2007 that
Sinosteel was granted the opportunity to conduct due diligence but declined to agree to the
normal commercial requirements to carry out this due diligence.
4) The Company believes it has satisfied all continuous disclosure obligations under ASX
listing rules and Corporations Act. Notwithstanding the allegations and rumours published
by certain media outlets, Midwest takes its corporate governance requirements seriously
and is focused on building value for all shareholders.

I understand current jorc is 133mt with a target of 225mt well personally i would be very cautious of what this mob says,especially in respect of jorc upgrades,i see the road haulage got another extension & the siding is to begin construction soon with 18 weeks the build time,while not being fully up on the mis story as yet(iam getting there),it seems the MMX offer now was a good one?my take is the market believed MMX have got the better corporate nous & had more connections to get the deals done,id say now it all hinges on the drilling upgrades to a minimum 225mt for it to be commercially viable,i do think because of that ar5e hole law mis holders have been dudded badly for the opportunty to grow the resource base substantially with other companies expertise,i will watch the goings on with interest...TB

SP booming today up $1.26 or +30%

Code Last Move %Mov Buy _Sell Open High _Low Volume __Value ______Last Traded
MIS 5.41 1.260 30.36% 5.41 5.42 5.47 5.48 5.41 2,937,478 16,029,247 14-Mar 12:21:49 PM

Re:MMX BACK FOR A 2ND BITE!IM NOT SURPRISED

tigerboi said:

also id say dont discount mmx coming back into the picture in the future

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Aahh who said that?..the only way they will get a railway out of there..mmx has always been the only mob to get the projects moving..tb

I don't know a lot about MIS so perhaps someone in the know can explain why the MIS shareprice is nearly double MMX's SP?