Sept. 14 (Bloomberg) -- Chen Ningning, the Chinese millionaire seeking to buyout steelmaker China Oriental Group Co., extended the deadline of her offer for a second time and raised her bid for shares she doesn't already own.

One of China's wealthiest women and the steelmaker's second- biggest shareholder, Chen extended her offer to Oct. 2, she said in a statement to Hong Kong's stock exchange today. She had on Aug. 31 extended the deadline to today. Her offer was accepted by holders of 55.7 million shares, equal to a 1.91 percent stake.

She is increasing her offer to gain support from China Oriental's minority shareholders in her attempt to wrest control of the steelmaker. Chen, who is the company's vice chairwoman, was estimated to be worth $217 million in 2006 by Forbes magazine. Her bid was opposed by the rest of the board of China Oriental, controlled by Chairman Han Jingyuan.

Under Chen's revised offer, minority shareholders will receive HK$18 cash and four exchangeable bonds for every 9 shares, the statement said. She previously offered HK$18 cash and two exchangeable bonds for every 9 shares, a bid that was valued at HK$6.3 billion ($809 million.)

China Oriental's stock, which has more than doubled this year, closed 1.3 percent higher at HK$3.76 today. First-half profit rose 32 percent to 769 million yuan ($102 million) because of higher sales and product prices, the steelmaker said Sept. 5.

Chen, who is being advised by Macquarie Bank Ltd., said Aug. 3 that she will sell her stake in China Oriental if her takeover bid fails. On Aug. 29, she denied allegations by the company she breached her duties as a director after the steelmaker filed a writ of summons against her and two companies she controls in Hong Kong's High Court.

Han controls 44.9 percent of China Oriental's shares, according to Hong Kong stock-exchange data. Chen owns a 28.2 percent stake.

The steelmaker makes billets and strips, producing more than 3 million tons of crude steel a year. It controls closely held Hebei Jinxi Iron & Steel Co., the Asian nation's 29th-biggest steelmaker, based in the northern city of Tangshan.

To contact the reporter on this story: Theresa Tang in Hong Kong at ttang3@bloomberg.net;

Last Updated: September 14, 2007 11:39 EDT