Shares spike at Aquila after Baosteel lifts stake
SYDNEY – Shares of Australia's Aquila Resources briefly rose more than 6% on Thursday after the company said one of China's largest steelmakers, Baosteel, had raised its stake to almost 20%.
The stock climbed as high as A$2.25, or by A$0.13 before falling back. At 03:00 GMT it stood 2% higher at A$2.16.
Baosteel bought 19-million Aquila shares, or 4.6% of all outstanding shares, taking its stake to just under the 20 percent threshold where it would need to declare its takeover intentions under Australian securities rules.
Baosteel initially acquired a 15% interest in 2009 and has a representative on the company's board.
Aquila in a statement said it took Baosteel's move as a "sign of support" for its undeveloped West Pilbara iron-ore project.
China, under its five-year plan, has said it aims to secure half its imported iron ore from mines owned or co-owned by Chinese firms by 2015, up from 15% in 2011.
Aquila's executive chairman, Tony Poli, was not available for comment. A company spokesman said it was not immediately apparent if the stock was acquired by Baosteel on or off market.
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