Chinese firms more aggressive in hunt for Australian resources

The days when Australian mining magnates could dictate terms to Chinese buyers are over.

A string of unsolicited takeover bids this year show that now the commodities boom has cooled, Chinese acquirers are willing to bypass local tycoons and boards to go direct to shareholders.

Underscoring China's impatience with the pace of development of mines and the opportunity afforded by a slump in Australian resource stocks, the past two weeks have seen two US$1 billion unsolicited bids from state-owned firms eager to gain full control over companies they have sizeable stakes in.

And if those firms, Baosteel Resources and Guangdong Rising Assets Management, prove successful, the deals could become the catalyst for more Chinese acquirers to follow suit.

"This may get the wheels turning where other Chinese companies are sitting with big stakes and have an inside track," said Paul Donnelly, executive director at JP Morgan, who works on metals and mining deals.

Baosteel's bid for coal and iron ore developer Aquila Resources is being seen as particularly unfriendly and likely to face stiff opposition.

The steel giant made the offer after failing to secure a meeting with Aquila's executive chairman, and 29 per cent owner, Tony Poli.