Nunavut Iron Ore Again Boosts Bid For Canada's Baffinland

Nunavut Iron Ore Acquisition Inc. has again sweetened its bid for a controlling stake in Baffinland Iron Mines Corp. (BIM.T), this time to C$1.40 a share for a 60% stake.

That offer compares with its most recent offer of C$1.35 a share for a 50.1% stake in the junior miner.

Nunavut Iron Ore, which is owned by Iron Ore Holdings LP, a limited partnership controlled by Bruce Walter, Jowdat Waheed and funds managed by Energy Minerals Group, is locked in a takeover battle with steel giant ArcelorMittal (MT) for Baffinland, whose Mary River iron-ore property in Canada's Nunavut Territory is a number of years away from production.

Nunavut Iron Ore launched the bidding in September with an 80-Canadian-cent a share hostile bid for all of Baffinland, which the target company rejected. Baffinland instead agreed to a C$1.10-a-share offer from ArcelorMittal, later boosted to C$1.25 a share.

ArcelorMittal is seeking to expand its iron-ore output to become more self-sufficient.

Nunavut Iron Ore also said Wednesday that it has extended its offer to Jan. 10 from Dec. 30.

Baffinland shares last changed hands at C$1.34 each in Toronto.

-By Carolyn King, Dow Jones Newswires; 416-306-2100; [e-mail]