Fortescue soars on China deal rumour

Photo: China Photos/ Getty.

Shares in Fortescue Metals soared after reports that Chinese interests want to buy into the iron ore miner’s infrastructure assets.

Two state-owned entities — China’s Hebei Iron & Steel Group and Tewoo Group — are said to be in separate talks about acquiring a stake.

Bloomberg, in its report, quoted “people with knowledge of the matter”.

The company later released a statement, noting media speculation and saying: “As previously reported, whilst there is no imperative, Fortescue is open to commercial discussions with a range of groups on a regular basis at the mining asset level. There is no agreement of such nature with any party at this time.”

Shares in Fortescue jumped more than 9% before settling at $1.87, up 5.3%.

Fortescue, which has been cutting costs and increasing production in response to the fall in iron ore prices, looked at selling part of its infrastructure assets in 2013.

In April, the company successfully raised $US2.3 billion to pay down debt, effectively giving it at least another three years breathing space during a period of market volatility.

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