Shares of Baffinland Iron Mines (BIM.TO) spiked on Wednesday, a sign that investors are expecting a higher takeover bid to materialize for the owner of a giant, undeveloped iron ore deposit in Canada's Arctic. Baffinland stock rose as much as 7.5 percent on the day to C$1.58 a share before paring gains to C$1.54 by midafternoon. Baffinland shareholders are weighing two takeover offers. The first is a friendly bid from global steel giant ArcelorMittal (ISPA.AS) at C$1.40 a share for the entire company, or some $550 million. The second is a hostile, C$1.45-a-share bid from Nunavut Iron Ore for 60 percent of the shares. Nunavut's offer values Baffinland at C$570 million.
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