Nunavut ups bid for Baffinland to C$1.35/shr, tops Arcelor offer

* Bid 69 pct above initial offer

* Extends offer to Dec. 30

* Bid C$0.25 above ArcelorMittal’s offer

* Says latest bid for 50.1 pct of Baffinland shrs

* Says already owns 8.8 pct of Baffinland shrs

Dec 16 (BestGrowthStock) – Nunavut Iron raised its bid for Canada’s
Baffinland Iron Mines (BIM.TO: ) to C$1.35 per share, easily
topping a rival offer by the world’s No. 1 steelmaker
ArcelorMittal (ISPA.AS: ) for the company.

Nunavut, a wholly owned subsidiary of Iron Ore Holdings LP
incorporated in Canada in August, raised its bid by 69 percent,
which is 25 Canadian cents above ArcelorMittal’s
C$1.10-per-share friendly offer.

The offer values Baffinland at about C$531.1 million, above
Arcelor’s C$433 million bid.

Shares of Baffinland, the owner of the prized Mary River
iron ore project in Canada have been trading slightly above the
global steel major’s offer for about a month on hopes of a
higher bid.

Nunavut latest bid is at about a 9 percent premium to
Baffinland’s Wednesday close of C$1.24 on the Toronto Stock
Exchange.

The offer is for 50.1 percent of the Canadian explorer’s
shares, including the 8.8 percent that Nunavut already owns, it
said in a statement. The company said it now needs to buy 162.4
million Baffinland shares.

Nunavut also extended its offer to Dec. 30.

On Monday, ArcelorMittal received approval from Canada’s
Commissioner of Competition for the deal. [ID:nSGE6BD08J]

Baffinland’s largest shareholder, Resource Capital Funds,
which holds about 23 percent of the company, and its directors
and board members have agreed to tender all their common shares
and warrants to ArcelorMittal.
(Reporting by Aftab Ahmed in Bangalore; Editing by
Unnikrishnan Nair)
([email protected]; within U.S. +1 646 223 8780;
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Nunavut ups bid for Baffinland to C$1.35/shr, tops Arcelor offer