UPDATE 1-Arcelor says raises Baffinland bid to C$1.25/shr

* Says Baffinland board backs bid

* New bid matches recent price paid by Nunavut

(Adds details, background)

PARIS, Dec 18 (BestGrowthStock) – The world’s largest steelmaker
ArcelorMittal (ISPA.AS: ) said on Saturday that it had raised its
offer for Canadian miner Baffinland Iron Ore Mines (BIM.TO: ) to
C$1.25 per share from a previous offer of C$1.10.

ArcelorMittal increased its friendly offer after Nunavut
Iron Ore Acquisition Inc, backed by a U.S. private equity firm,
said on Thursday it had acquired a total of over 15 million
shares in a rival, hostile takeover bid. Nunavut is offering
C$1.35 a share.

The Luxembourg-based steel giant said in a statement that
Baffinland’s board of directors continued to recommend the bid,
which would run out on Dec. 29.

ArcelorMittal has been seeking to expand its production of
and long-term contracts for iron ore and coal, particularly as
major suppliers Vale (VALE5.SA: ), Rio Tinto (RIO.AX: )(RIO.L: ) and
BHP Billiton (BHP.AX: )(BLT.L: ) move to quarterly from annual
contracts and pump up prices.

Nunavut Iron, which has been buying up Baffinland stock,
said it had paid an average of C$1.2542 for the last chunk of
over 6 million shares, raising the stakes in its takeover battle
with ArcelorMittal.

Nunavut, a wholly owned subsidiary of Iron Ore Holdings LP,
was incorporated in Canada in August specifically for the
purpose of bidding for Baffinland.

Its parent company Iron Ore Holdings LP was incorporated in
the United States for the same purpose. Both are backed by
private equity firm the Energy and Minerals Group.

Baffinland is a Toronto-based junior mining explorer that is
sitting on enough iron ore to supply all of Europe from its Mary
River project on Baffin Island in the infrastructure-poor
Canadian Arctic territory of Nunavut.
(Reporting by Leigh Thomas; Editing by Noah Barkin)

UPDATE 1-Arcelor says raises Baffinland bid to C$1.25/shr