Nunavut Extends Offer for Baffinland

Nunavut Iron Ore has taken yet another step in the bidding war against ArcelorMittal for Baffinland Iron Mines. It has raised its offer to Canadian $1.45 in cash per share in addition to one exchange right per common share.

Baffinland shareholders can also buy one common share over the next three years at $1.40 or a price set by the Toronto Stock Exchange rules. It has also extended its offer to January 25, 2011. The bidding war for Baffinland Iron Mines has been in progress since September last year.

The last offer made by the world’s largest steelmaking company ArcelorMittal was C$1.40 per share bid for 100 percent of the company. This offer is set to expire on Monday and has not been extended so far. Baffinland Iron Mines owns the Mary River iron ore deposit in the Eastern Arctic Baffin Island.

The new offer by Nunavut is being seen as a pressure tactic in the proceedings by analysts. The Monday deadline will no longer be as effective for Baffinland shareholders as they now have an option to go with Nunavut at a later date. Nunavut at present has a 10% stake in Baffinland.