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SYDNEY - THREE Chinese companies, Sinosteel, Chinalco and Baosteel , are vying for a stake in Australian iron ore group Fortescue Metals Group, the Australian newspaper reported.
In an unsourced report on Monday, the paper said United States boutique fund Harbinger Capital Partners, a long-term Fortescue investor with a 16 per cent stake, was looking to reduce its holding to cash in on Fortescue's strong share price gains.
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.
Fortescue, whose shares have tripled in value in little over a year, is expected to begin shipping ore this month, with initial plans to export 45 million tonnes to Chinese steel mills.
The company has a market capitalisation at present of about A$25.7 billion (S$32.9 billion). -- REUTERS
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