Tuesday, January 25, 2011 TORONTO (Reuters) - A majority of shareholders Baffinland Iron endorsed the offer of 590 million Canadian dollars (434 million) and Nunavut ArcelorMittal, announced Tuesday the specialist steel.
ArcelorMittal said it had collected 61% of the shares Baffinland through this joint operation with Nunavut Iron and supported by a fund of U.S. investment capital.
The offer is conditional upon obtaining at least two-thirds of the capital Baffinland, said ArcelorMittal in a statement.
ArcelorMittal said it had collected 61% of the shares Baffinland through this joint operation with Nunavut Iron and supported by a fund of U.S. investment capital.
The offer is conditional upon obtaining at least two-thirds of the capital Baffinland, said ArcelorMittal in a statement.
After four months of battle, ArcelorMittal and Nunavut joined earlier this month to propose a joint bid on Baffinland, which has vast reserves of iron ore in the Canadian Arctic.
Under the agreement between the former rivals, ArcelorMittal will acquire all of Baffinland. The group's capital will then be divided between the two groups, 70% for Arcelor, the remainder returning to Nunavut.
The joint bid for $ 1.50 Canadian per share expired at midnight Monday. It was extended to February 4 to allow time for other shareholders to tender their shares.
"They hold the right end, so I think that shareholders should consider subscribing to the offer by the new deadline," said Peter Campbell, an analyst in the mining sector with Jennings Capital in Toronto.
"I think there is really no reason not to."
With this transaction, ArcelorMittal would be less dependent on major producers of iron ore, like BHP Billiton and Vale, to supply its mills. (sourced:Reuters)
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