Canadian regulator steps in to scrutinise Nunuvut’s bid for Baffinland
06 Jan 2011
The Canadian regulator has stepped in to scrutinise Nunuvut Iron Ore Acquisition's partial offer for iron ore explorer Baffinland Iron Mines Corporation in the fierce four month bidding war against steel giant ArcelorMittal.
The move comes after the Ontario Securities Commission (OSC) filed an application ''to cease trade any shares tendered to the take-over bid by Nunavat Iron Ore Acquisition Inc for the common shares of Baffinland Iron Mines Corporation, which take-over bid currently expires at 11:59 pm (Toronto time) on January 10, 2011.''
The purpose of the scrutiny is to find out whether Nunuvut is right in making a partial offer for Baffinland under the Ontario's securities laws.
Nunavut's offer is C$1.45 a share or C$570 million for 60 per cent of Baffinland, while Luxemburg-based ArcelorMittal has offered C$1.40 a share or C$550 million for the whole of the Toronto-based miner.
Both bids are due to expire on 10 January 2011.
Nunavut, a special purpose vehicle, has been created for the Baffinland acquisition by the US-based $2 billion private equity firm Energy & Minerals Group.