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Monday, January 10, 2011

Nunavut adds exchange right to bid, extends offer, (TSE: BIM), (ISPA)

Nunavut Iron Ore said on Monday it would boost its offer for Baffinland Iron Mines (BIM.TO) to C$1.45 in cash per share, plus one exchange right per common share, aiming to thwart a competing bid by ArcelorMittal SA (ISPA.AS). The company, backed by a private equity fund, also extended its offer to Jan. 25, after signaling it would do so last week. The offer, which valued the company at C$570 million ($570 million), had been scheduled to expire on Monday. Since September, Nunavut has been caught up in a bidding war with Arcelor, the world's No. 1 steelmaker, to gain control of Baffinland and its vast iron ore deposit in the Canadian Arctic.