MIDWEST Corp, the target of two takeover offers, will allow China's Sinosteel Corp to study the Australian iron ore producer's finances.

"The Midwest board continues to explore the possibility of a transaction," the Perth-based company said in a statement yesterday to the Australian Stock Exchange.

Sinosteel, China's second-biggest iron ore trader, has offered A$5.60 per share, or A$1.2 billion (US$1.03 billion), for Midwest, trumping a bid from Murchison Metals Ltd. A takeover would be the largest overseas metals acquisition by a Chinese company, according to Bloomberg data.

Midwest rose nine cents, or 1.9 percent, to close at A$4.74 in Sydney.

Before being able to study Midwest's finances, Sinosteel has to agree not to disclose the results and to refrain from buying shares in the firm, Midwest said in the statement.

Murchison Metals Ltd offered one new share for every 1.08 Midwest share and last week extended its offer to January 23.