Baffinland board recommends Arcelor’s amended offer

BANGALORE (BestGrowthStock) – Canada’s Baffinland Iron Mines Corp (BIM.TO: ) said its board recommended shareholders accept the amended ArcelorMittal (ARCMT.UL: ) (ISPA.AS: ) offer and reject the Nunavut Iron Ore Acquisition Inc offer.

The Canadian junior miner’s board advised its shareholders to tender common shares and 2007 warrants to ArcelorMittal, the world’s largest steelmaker, which raised its bid to C$1.25 a share on Saturday, from C$1.10 a share.

In November, Luxembourg-based ArcelorMittal offered C$433 million for Baffinland to raise self-sufficiency.

Baffinland board said it could respond to unsolicited superior proposals.

Nunavut, backed by a U.S. private equity group, responded to ArcelorMittal’s amended offer in a statement on Sunday, saying the ArcelorMittal offer was still inferior to its own C$1.35-a-share proposal.

“The amended Nunavut offer is a partial offer and that it is structurally coercive and its value is highly uncertain,” Baffinland’s board said, adding “If successful, the amended Nunavut offer will have an adverse effect on the liquidity of the common shares.”

Baffinland shares, which have more than doubled in value since Nunavut offered to buy the company in a cash deal in September, closed at C$1.31 on Monday on the Toronto Stock Exchange.

(Reporting by Isheeta Sanghi in Bangalore)

Baffinland board recommends Arcelor’s amended offer