ArcelorMittal Raises All-Cash Bid For Baffinland
December 18 2010 - 9:16PM
Dow Jones News
Canada's Baffinland Iron Mines Corp. (BIM.T) said late Saturday
that its board has accepted an improved all-cash friendly offer
from ArcelorMittal (MT, MT.AE), the world's largest steel
producer.
Luxembourg-based ArcelorMittal raised its bid to C$1.25 a share
from its original bid of C$1.10, Baffinland said in a
statement.
ArcelorMittal's amended offer comes two days after rival Nunavut
Iron Ore Acquisition Inc. on Thursday increased its hostile
all-cash bid to C$1.35 a share from 80 Canadian cents.
Nunavut said it acquired a total of just over 15 million shares
under its hostile cash bid of C$1.35 a share for Toronto-based
Baffinland. Nunavut, a wholly owned subsidiary of Iron Ore Holdings
LP (IRNHF, IOH.AU), is backed by the Energy Minerals Group, a U.S.
private equity firm.
ArcelorMittal's new offer expires at 11:59 p.m. Toronto time on
Dec. 29, Baffinland said. Warrant holders will receive 10 Canadian
cents for each warrant.
The minimum acceptance condition for the acquisition has been
reduced to 50% plus one common share, Baffinland said. The two
companies have agreed to increase the breakup fee to C$15.5 million
from C$11 million. As well, Baffinland's board has approved the
adoption of a new shareholder rights plan, subject to approval of
the Toronto Stock Exchange.
ArcelorMittal initially offered C$1.10 a share for Baffinland on
Nov. 8.
As reported, ArcelorMittal already has a significant iron-ore
presence in Canada and is in the process of expanding its iron ore
output to become more self sufficient. Baffinland, meanwhile, wants
a strategic partner to help develop its Mary River iron-ore project
on Canada's Baffin Island in Nunavut.
-By Caroline Van Hasselt, Dow Jones Newswires; 416-306-2023;
caroline.vanhasselt@dowjones.com
Iron Ore Holdings (ASX:IOH)
Historical Stock Chart
From May 2024 to Jun 2024
Iron Ore Holdings (ASX:IOH)
Historical Stock Chart
From Jun 2023 to Jun 2024