ArcelorMittal Extends Baffinland Offer After Nunavut Amends Bid
11 Gennaio 2011 - 9:48AM
Dow Jones News
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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