September 08, 2008

Chinese groups eye stake in FMG - Report

The Australian newspaper reported that 3 Chinese companies, Sinosteel, Chinalco and Baosteel are vying for a stake in Australian iron ore group Fortescue Metals Group Ltd.

In an un sourced report, the paper said that US fund Harbinger Capital Partners, a long term Fortescue investor with a 16% stake, is looking to reduce its holding to cash in on Fortescue's strong share price gains.

As per report, any sale to a Chinese group would probably only be for half of Harbinger's stake, given the Australian government's concerns about the level of foreign investment in the sector.