Steel titan ArcelorMittal (MT) Tuesday extended its offer for Baffinland Iron Mines Corp. (BIM.T) after Nunavut Iron Ore Acquisition Inc. amended its rival bid for control of the Canadian junior miner.

ArcelorMittal, the world's largest steelmaker, extended its offer for all of Baffinland's shares and warrants until Jan. 21, marking the third time it has done so since the protracted battle for the Toronto-based miner began in September.

Baffinland is developing the Mary River iron ore project in Nunavut, northern Canada.

ArcelorMittal is offering C$1.40 a share for all of Baffinland's shares and C$0.10 for each of Baffinland's 2007 warrants. ArcelorMittal has already secured backing from Baffinland's board of directors for its bid.

Meanwhile, Nunavut Iron is offering C$1.45 a share for 60% of Baffinland's shares plus an exchange right to receive Baffinland warrants.

Both bids value the junior miner's equity at well over C$500 million.

Baffinland closed Friday at C$1.42 in Toronto. Its stock was trading at 56 Canadian cents in September, right before Nunavut Iron launched the bidding process.

Nunavut Iron is owned by Iron Ore Holdings LP, a limited partnership controlled by Bruce Walter, Jowdat Waheed and funds managed by Energy Minerals Group. It already owns about 10% of Baffinland and on Tuesday amended its offer to include the warrant proposal.

Pursuant to Nunavut Iron's amended offer, Baffinland would distribute to each shareholder 0.4 of a share-purchase warrant for each share held. Each whole warrant, exercisable for three years, would entitle the holder to buy another common share at a price equal to the greater of C$1.40 and the price determined in accordance with the rules of the Toronto Stock Exchange.

The number of warrants shareholders would get will vary depending upon the number of shares tendered to the offer, Nunavut Iron said. If the minimum tender condition isn't met, no exchange rights will be issued.

Nunavut Iron's offer expires Jan. 25. Other conditions of its offer are unchanged.

ArcelorMittal's offer is contingent upon the steelmaker getting 50% plus one share of Baffinland's outstanding shares. The Luxembourg-based company already has commitments from shareholders representing at least 25% of Baffinland's shares to sell to ArcelorMittal.

-By Alex MacDonald and Carolyn King, Dow Jones Newswires; +44 (0)7776 200 924; alex.macdonald@dowjones.com
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