Nunavut Iron Ore Acquisition Inc. has again sweetened its bid
for a controlling stake in Baffinland Iron Mines Corp. (BIM.T),
this time to C$1.40 a share for a 60% stake.
That offer compares with its most recent offer of C$1.35 a share
for a 50.1% stake in the junior miner.
Nunavut Iron Ore, which is owned by Iron Ore Holdings LP, a
limited partnership controlled by Bruce Walter, Jowdat Waheed and
funds managed by Energy Minerals Group, is locked in a takeover
battle with steel giant ArcelorMittal (MT) for Baffinland, whose
Mary River iron-ore property in Canada's Nunavut Territory is a
number of years away from production.
Nunavut Iron Ore launched the bidding in September with an
80-Canadian-cent a share hostile bid for all of Baffinland, which
the target company rejected. Baffinland instead agreed to a
C$1.10-a-share offer from ArcelorMittal, later boosted to C$1.25 a
share.
ArcelorMittal is seeking to expand its iron-ore output to become
more self-sufficient.
Nunavut Iron Ore also said Wednesday that it has extended its
offer to Jan. 10 from Dec. 30.
Baffinland shares last changed hands at C$1.34 each in
Toronto.
-By Carolyn King, Dow Jones Newswires; 416-306-2100;
carolyn.m.king@dowjones.com