ArcelorMittal, the world’s largest steelmaker, has upped its bid for Canadian miner Baffinland Iron Ore Mines, Reuters reported. The company raised its bid to 1.25 Canadian dollars ($1.23) per share, from 1.10 Canadian dollars ($1.08). ArcelorMittal increased its offer after Nunavut Iron Ore Acquisition, which is backed by private equity firm the Energy and Minerals Group, acquired more than 15 million shares in a rival, hostile takeover bid, Reuters said.
(Reuters) – The world’s largest steelmaker ArcelorMittal said on Saturday that it had raised its offer for Canadian miner Baffinland Iron Ore Mines to C$1.25 per share from a previous offer of C$1.10.
ArcelorMittal increased its friendly offer after Nunavut Iron Ore Acquisition Inc, backed by a U.S. private equity firm, said on Thursday it had acquired a total of over 15 million shares in a rival, hostile takeover bid. Nunavut is offering C$1.35 a share.
The Luxembourg-based steel giant said in a statement that Baffinland’s board of directors continued to recommend the bid, which would run out on Dec. 29.
ArcelorMittal has been seeking to expand its production of and long-term contracts for iron ore and coal, particularly as major suppliers Vale , Rio Tinto and BHP Billiton move to quarterly from annual contracts and pump up prices.
Nunavut Iron, which has been buying up Baffinland stock, said it had paid an average of C$1.2542 for the last chunk of over 6 million shares, raising the stakes in its takeover battle with ArcelorMittal.
Nunavut, a wholly owned subsidiary of Iron Ore Holdings LP, was incorporated in Canada in August specifically for the purpose of bidding for Baffinland.
Its parent company Iron Ore Holdings LP was incorporated in the United States for the same purpose. Both are backed by private equity firm the Energy and Minerals Group.
Baffinland is a Toronto-based junior mining explorer that is sitting on enough iron ore to supply all of Europe from its Mary River project on Baffin Island in the infrastructure-poor Canadian Arctic territory of Nunavut. (Reporting by Leigh Thomas; Editing by Noah Barkin)