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ArcelorMittal Increases Baffinland Offer Price to C$1.40

01/03/2011 - ArcelorMittal has increased its offer for all outstanding common shares and common share purchase warrants issued for of Baffinland Iron Mines to C$1.40 per Common Share. The revised offer is open for acceptance until midnight (Toronto time) on 10 January 2011.

ArcelorMittal has increased its offer for all outstanding common shares of Baffinland Iron Mines Corp. and all outstanding common share purchase warrants issued pursuant to a warrant indenture dated 31 January 2007 to C$1.40 per Common Share. The revised Offer is open for acceptance until 11:59 p.m. (Toronto time) on 10 January 2011.
 
The increased all cash offer represents a premium of approximately 27% to ArcelorMittal’s original offer price of C$1.10 per Common Share, and a premium of 150% to the trading price of the common shares prior to Nunavut's original unsolicited offer in September 2010.
 
“ArcelorMittal’s increased Offer of C$1.40 per share for all Common Shares provides demonstrably superior value and certainty for Baffinland shareholders, compared to Nunavut Iron Ore Acquisition Inc.’s revised coercive partial offer,” said Peter Kukielski, Head of Mining and Member of the Group Management Board of ArcelorMittal. “Our Offer ensures shareholders receive 100% cash for all of their shares, rather than cash for just some shares and diluted value for the shares not taken up under the Nunavut offer.”
 
As previously announced, ArcelorMittal has entered into a lock-up agreement with Baffinland's largest shareholder, Resource Capital Funds under which RCF has tendered all of its Common Shares and 2007 Warrants, representing approximately 22.5% of the outstanding Common Shares (on a fully diluted basis), to the Offer. In addition, each of the directors and officers of Baffinland have tendered all Common Shares and 2007 Warrants held by them, representing a further approximately 2.4% of the outstanding Common Shares (on a fully diluted basis), to the Offer pursuant to lock-up agreements with ArcelorMittal. In addition, as at 29 December 2010, no further conditions relating to regulatory approvals are outstanding under the Offer.
 
The ArcelorMittal Offer remains subject to the same conditions as the original Offer of 12 November 2010 as amended by the Notice of Variation and Extension dated 18 December 2010.
 
The Support Agreement entered into between ArcelorMittal and Baffinland on November 8, 2010 as amended December 18, 2010, including the non-solicitation covenants and ArcelorMittal's right to match any unsolicited superior proposal, remains in place.
 
ArcelorMittal has retained Georgeson Shareholder Communications Canada Inc. as information agent in connection with the Offer. Computershare Investor Services Inc. is the depositary for the Offer.
 
ArcelorMittal is the world's largest steel company, with operations in more than 60 countries, with leadership in major global steel markets, leading R&D and technology, sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in over 20 countries spanning four continents, the Company covers all of the key steel markets, from emerging to mature.
 
In 2009, ArcelorMittal had revenues of $65.1 billion and crude steel production of 73.2 million tonnes, representing approximately 8 per cent of world steel output.