Baffinland seeks acceptance of takeover bid
Canadian mining company Baffinland on Monday urged shareholders to accept a joint takeover offer by Europe's ArcelorMittal and Nunavut Iron Ore, valued at about Can$600 million.
In a statement, its board announced it has "recommended that Baffinland's securityholders accept the ArcelorMittal and Nunavut Iron Ore joint offer."
ArcelorMittal and Nunavut Iron Ore agreed last week to a Can$1.50 per share joint offer, ending a bidding war over Baffinland, which specializes in the development of iron ore sites along the Mary River in Canada's Arctic.
The joint bid represents a seven-percent premium to ArcelorMittal's last offer and an 88 percent premium to the original Nunavut offer of Can$0.80 per common share.
The offer is open for acceptance until 11:59 p.m. Toronto time on January 24 (0459 GMT on January 25).
ArcelorMittal has already locked up a quarter of Baffinland's shares while Nunavut owns a 10.3 percent stake in the company. If their bid succeeds, they have said they would split ownership of Baffinland 70-30 percent, respectively.
Luxembourg-based ArcelorMittal has sought to boost self-sufficiency in iron ore in order to lessen its dependence on the three main producers, BHP Billiton, Vale and Rio Tinto.
© 2011 AFP