ArcelorMittal and Nunavut Iron Ore Acquisition Inc., which are now the joint owners of Canada's iron ore-rich Baffinland Iron Mines Corporation, Tuesday announced taking up an additional 4,773,400 common shares of Baffinland at their outstanding offer of $1.50 per share.
Abandoning their rivalry to take over Baffinland, ArcelorMittal and Nunavut made a joint bid for the Toronto-based iron-ore giant January 14 at $1.50 per per share.
With their successful $590-million bid last week, the two became joint owners of Baffinland, with ArcelorMittal controlling the larger stake of 70% and Nunavat 30 %.
Holding about 60 % of Baffinland stock at the time of their takeover, the two partners waived a two-thirds minimum tender condition and offered to buy the remaining shares at $1.50 per share till February 4.
The additional acquisition of common shares announced Tuesday takes their share of Baffinland stock to 65 %.
The new owners said their "offer remains open for acceptance until 11:59 p.m. (Toronto time) on February 4, 2011, to allow Baffinland security holders who have not yet tendered their common shares and 2007 Warrants time to do so and receive prompt payment for their tendered securities."
The battle for Baffinland began in September when Nunavat offered 80 cents a share for a majority stake in it and ArcelorMittal entered the fray with its offer of $1.10 per share for 100 % control.
Both eyed Baffinland's 365 million tonnes of iron ore at its Mary River site in Canadian Arctic.
The Mary River project, which needs $4 billion to complete, can yield up to 18 million tonnes of iron ore annually for up to two decades.
Investment bank Jennings Capital Inc. says the project holds "the best undeveloped iron ore deposit in the world."