ArcelorMittal and Nunavut team up in Baffinland chase
Canada's Baffinland Iron Mines Corp has backed a joint takeover offer made for the company by ArcelorMittal and Nunavut Iron Ore Acquisition Inc.
Baffinland, which is developing the Mary River iron-ore project on north Baffin Island (see page 8), has been a target of separate takeover bids by the two companies for three months.
Up until the joint offer, Baffinland's board had recommended ArcelorMittal's friendly all-share US$551 million bid (C$1.40/share) over Nunavut's hostile attempt.
However, just days after Nunavut upped its bid to C$1.50/share (plus a warrant exchange) the two companies joined forces to offer the same value for 100% of Baffinland's stock.
Peter Kukielski, ArcelorMittal's head of mining, said: “Together with Nunavut, we are providing a more attractive offer to Baffinland shareholders than either of us were prepared to provide on our own.”
Following the completion of the deal, ArcelorMittal and Nunavut would own 70% and 30% of the firm, respectively.
Despite Baffinland's backing for the joint offer, the company still has the option to respond to a superior bid. However, the company said since ArcelorMittal's initial bid on November 8 it has not received any third-party proposals.
Meanwhile, ArcelorMittal plans to invest C$253 million in its Dofasco plant in Canada by 2013 to boost production and reduce emissions, according to the Ontario government.
The Canadian province is also investing C$43.6 million in the plant, the Ontario ministry of economic development and trade said. ArcelorMittal is yet to make comment on the matter.
Nunavut improves Baffinland offer (Jan 14)Read more: www.mining-journal.com/250029