Australia's Cape Lambert Iron Ore Ltd said on Friday it saw no need to advise shareholders of the details of a meeting with Merrill Lynch and steelmaker Evraz Group, after Merrill acquired a 16 percent interest in the company.
Merrill has said only that it holds the stake through a nominee company.
A Cape Lambert director, Tony Sage, told Reuters on Thursday the shares were likely being held for Evraz, a steel company partly owned by Russian billionaire Roman Abramovich.
Cape Lambert is readying iron ore mines in west Australia, one of the world's richest regions for the key steel-making ingredient.
Evraz has already agreed to pay $1.5bn for a controlling stake in another steel group, Delong Holdings, which holds an option to take about 12% of Cape Lambert, sparking speculation of a pending takeover bid.
Cape Lambert has already signed a formal agreement for the sale of its namesake iron ore project in the Pilbara region to MCC Mining Pty Ltd for A$400m ($392m).
MCC Mining is a wholly owned Australian subsidiary of China MetallurgicalGroup Corp.
MCC does not hold any Cape Lambert shares, according to spokesman for Cape.
"Should the company receive any information that needs to be disclosed it will advise shareholders immediately," Cape Lambert said in a statement to te Australian Stock Exchange.
Evraz, already Russia's biggest steel maker by domestic volume, is expanding abroad. It has completed the purchase of Oregon Steel Mills in the United States, Highveld Steel and Vanadium in South Africa.
Cape Lambert shares were 6.9% higher at A$0.85 on Friday in a broader market down 1.3%.
by James Regan, Reuters
