Steel giant ArcelorMittal (MT) matched the price of Nunavut Iron Ore Acquisition Inc.'s sweetened bid for Baffinland Iron Mines Corp. (BIM.T) Friday, the latest move in a three-month battle for control of the junior miner.

Luxembourg-based ArcelorMittal, the world's largest steelmaker, raised its offer to C$1.40 a share from C$1.25 for 100% of Baffinland. Its latest bid is a premium of about 27% to its original offer.

Earlier this week, Nunavut Iron Ore lifted its hostile offer to C$1.40 a share for a 60% stake in Baffinland, up from C$1.35 a share for a 50.1% interest. Nunavut already controls 40.7 million Baffinland shares, or about 10%.

In Toronto Friday, Baffinland was recently up 7 Canadian cents, or 5.1%, to C$1.45, amid speculation that Nunavut may make a counter offer.

The stock closed at 56 Canadian cents on Sept. 21, the day before Nunavut Iron Ore announced its initial offer.

ArcelorMittal and Nunavut Iron Ore have been embroiled in a lengthy takeover fight for Baffinland, whose Mary River iron-ore property in Canada's Nunavut Territory is a number of years away from production.

Nunavut Iron Ore, owned by Iron Ore Holdings LP, a limited partnership controlled by Bruce Walter, Jowdat Waheed and funds managed by Energy Minerals Group, 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, which it later boosted to C$1.25 a share.

The latest offers from both ArcelorMittal and Nunavut Iron Ore expire Jan. 10.

Raymond James analyst Tom Meyer raised his target price for Baffinland to C$1.40 from C$1.25, and reiterated his view that shareholders should tender to ArcelorMittal's offer for 100% control.

-By Judy McKinnon and Caroline Van Hasselt, Dow Jones Newswires; 416-306-2100; judy.mckinnon@dowjones.com
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