Stating its desire to be involved in the development of Aquila’s $A7.4 billion West Pilbara iron ore project, MinRes this week purchased 50.2 million Aquila shares at $3.75 from M&G Investments in a block trade, worth about $188 million.

The price was well above Baosteel and Aurizon’s bid price of $3.40 per share, prompting speculation that the offer may be lifted.

But the bidders poured cold water on the talk this afternoon, saying there would be no increase in the offer price and no extension to the July 11 closing date.

Aquila’s independent board committee is yet to make a formal recommendation but after welcoming the higher price paid by MinRes, it is expected the company will tell shareholders to reject the offer.

The company noted today’s announcement and reiterated its calls for shareholders to take no action.

Meanwhile, Baosteel chairman Dai Zhihao said the company had tried to support Aquila over the past five years but believed it had reached an impasse.

“Baosteel and Aurizon announced the offer for Aquila shares with the intention to progress Aquila's stalled development projects,” he said.

“The full cash offer gives Aquila shareholders an opportunity to realise certainty of value for their investment at a substantial premium to trading prices prior to the announcement of the offer.

“This is in stark contrast to remaining a shareholder of Aquila and facing the challenges and uncertainties of volatile commodity markets, risks of financing large capital expenditure, potentially dilutive capital raisings and the challenge of developing genuinely economically feasible greenfield projects.

Zhihao said if the bid was unsuccessful, Baosteel saw no meaningful prospect for being involved in the development of the WPIOP.

“In those circumstances Baosteel and its related entities would have to carefully consider their ongoing shareholding in Aquila,” he said.

Aurizon CEO Lance Hockridge noted that iron ore prices had fallen around 15% since the bid was announced on May 5.

“Baosteel and Aurizon together have the capacity to fund, the resources and the genuine capability to progress Aquila's greenfield projects with the joint venture partners,” he said.

“In this context, we hope the Aquila board will consider this compelling and certain all-cash offer in the interest of all shareholders."

After dipping as low as $2.96, Aquila shares closed 12.4% down to $3.10.