Baosteel and Aurizon gain upper hand as Aquila rejects competing bid

|About: Aquila Resources Inc. (AQARF)|By:, SA News Editor

A consortium led by China's Baosteel moves closer to acquiring Aquila Resources (AQARF) after rival Mineral Resources Ltd. abandoned plans to make an offer valuing the Australian iron ore miner at A$1.54B (US$1.44B).

Aquila directors urged shareholders to accept a cash offer from Baosteel and Australia's Aurizon Holdings (QRNNF) of A$3.40/share after talks with Mineral Resources collapsed; Aquila's executive chairman and co-founder says he intends to vote his 28.9% stake in favor of their bid.

A takeover by Baosteel, which will own as much as 85% of Aquila if successful, would unlock new iron ore supply for its steel kilns in China.