On December 29, the world's largest steelmaker Luxembourg-based ArcelorMittal announced that it has extended its 492 million C$ (492 million US$) offer to purchase all shares of Canadian miner Baffinland Iron Mines Corporation (Baffinland) until 11:59 p.m. on January 10, 2011, after its rival bidder Toronto, Canada-based Nunavut Iron Ore Acquisition Inc. (Nunavut Iron), a subsidiary of US-based Iron Ore Holdings, LP, increased and extended the deadline for its offer.
Nanavut Iron raised its price to C$1.40 ($1.40) per share, to acquire 60 percent of Baffinland outstanding common shares, from $1.35 per share for 50.1 percent of the shares. The bid expires on December 30. Nanavut Iron also extended its offer to 11:59 p.m. on January 10, 2011
As SteelOrbis previously reported, the Baffinland board previously backed ArcelotMittal's offer of C$1.25 ($1.25) per share for 100 percent of the shares, against the hostile Nunavut Iron offer.
"The special committee of the board of directors is reviewing the amended offer with its financial and legal advisors and will respond in due course," Baffinland said in a statement on December 29.
Baffinland's Mary River project has proven reserves of about 365 million metric tons of ore, grading an average of 65 percent iron, and about 500 million mt of ore resources. For some months now Baffinland has been looking for partners for the C$4 billion (US$4 billion) project, which is expected to produce 18 million mt per year.
ArcelorMittal has already received the necessary approvals for acquisition from local authorities.