Fortescue shares surge on asset talks

Fortescue shares have surged on media reports that Chinese firms are looking to buy part of its infrastructure.

Shares in iron ore miner Fortescue have jumped five per cent following a report two Chinese firms were eyeing the company's assets.

A media report on Tuesday suggested China's Hebei Iron & Steel Group and Tewoo Group had approached Fortescue about taking a stake in its infrastructure assets, which include mines, rail and port operations.

In response, Fortescue shares had jumped 9.5 cents to $1.87 as of 1545 AEST.

Fortescue has publicly said it is open to selling part of its assets, but issued a statement on Wednesday saying it has not reached any agreements with potential investors.

The company's shares shares have been under pressure for the past 12 months due to a slide in the iron ore price as rivals like Rio Tinto and BHP Billiton continue to ramp up production in the face of waning demand from China.


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Source: AAP


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