A takeover fight for Canada's Baffinland Iron Mines Corp. (BIM.T) between international steel giant ArcelorMittal (MT) and shareholder group Nunavut Iron Ore Acquisition Inc. ended Friday after the two agreed to come together in a sweetened joint bid.

ArcelorMittal, the world's largest steel producer, said Nunavut Iron will join it in an all-cash bid for Baffinland at C$1.50 a share, or C$550 million. ArcelorMittal would own 70% of Baffinland and Nunavut Iron would own the remainder.

The joint bid is up from C$1.40 a share ArcelorMittal last offered, and well above the 80 Canadian cents a share Nunavut Iron offered for Baffinland when the bidding first began in September.

Baffinland stoked the interest of several international mining companies early last year when it said it was looking for a partner to develop its C$4 billion Mary River iron ore project, considered to be one of the best undeveloped iron ore mines in the world, and expected to produce 18 million tons a year over 21 years.

ArcelorMittal's latest offer is its fourth as it engaged in back-and-forth bidding with Nunavut Iron, an entity created by Houston private equity firm The Energy & Minerals Group, which owns 10.3% of Baffinland's shares. Nunavut Iron had made a hostile partial offer for 60% of Baffinland's shares at C$1.45 each, plus warrants for the remaining holders.

Baffinland's board had given its support to ArcelorMittal's bid, and agreed to tender their shares representing a 2.4% stake. Resource Capital Funds, Baffinland's largest shareholder with a 22.5% stake, also agreed to support ArcelorMittal's bid.

The new joint bid expires on Jan. 24, and two-thirds of shareholders must vote in favor for the deal to be approved.

"Together with Nunavut Iron, we are providing a more attractive offer to Baffinland shareholders than either of us were prepared to provide on our own," said Peter Kukielski, head of mining at ArcelorMittal.

Representatives of Nunavut Iron and Baffinland weren't immediately available to comment.

Shares of Baffinland recently traded on the Toronto Stock Exchange at C$1.52 each.

-By Edward Welsch and Devon Maylie, Dow Jones Newswires; 403-229-9095; edward.welsch@dowjones.com
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Giu 2024 a Lug 2024 Clicca qui per i Grafici di Arcelor Mittal
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Lug 2023 a Lug 2024 Clicca qui per i Grafici di Arcelor Mittal