After recently fending off an unsolicited takeover bid as it
continued to pursue strategic alternatives, Baffinland Iron Mines
Corp. (BIM.T) has agreed to a C$433 million bid from ArcelorMittal
S.A. (MT).
Baffinland is recommending shareholders accept a C$1.10-a-share
offer from the world's largest steelmaker, noting it represents a
premium of about 37.5% to the 80-Canadian-cent-a-share unsolicited
bid from Nunavut Iron Ore Acquisition Inc.
Baffinland closed Friday in Toronto at 95 Canadian cents. It was
halted early Monday.
The Toronto-based junior miner formally rejected Nunavut Iron
Ore's bid in late October, saying the bid significantly undervalued
the company.
Baffinland has entered a support agreement with ArcelorMittal,
with all of its directors and officers agreeing to tender to the
offer. Its largest shareholder, Resource Capital Funds, has also
entered a lock-up agreement with ArcelorMittal and will tender its
23% stake.
A formal offer is expected to be mailed shortly.
Baffinland has been seeking a strategic partner to help develop
its Mary River iron ore project on Canada's Baffin Island in the
northern territory of Nunavut.
-By Judy McKinnon, Dow Jones Newswires; 416-306-2100;
judy.mckinnon@dowjones.com