TORONTO - Faced with a hostile takeover bid from upstart Nunavut Iron Ore Acquisition, Baffinland Iron Mines has accepted an offer from ArcelorMittal worth $433 million, a premium of 37.5% over NIO's offer.
ArcelorMittal has offered to acquire all of Baffinland's outstanding common shares and share purchase warrants. Shareholders will receiver $1.10 per share and warrant holders will receive $0.10 per warrant. The offer is to expire at 11.59 pm (EST) on Dec. 20, 2010.
The Baffinland board has approved ArcelorMittal's offer and urges its shareholders to do the same. Resource Capital Funds, the largest shareholder with a 22.5% interest in Baffinland, has entered into a lockup agreement with ArcelorMittal.
Details of the offer as well as the Nov. 9 webcast are posted at www.Baffinland.com.