Shares in Baffinland Iron Mines were still trading above the price being offered for the company by ArcelorMittal on Monday, despite news of Canadian regulatory approval for the deal and the continued absence of a higher bid.
ArcelorMittal has received a 'no action' letter from Canada's Commissioner of Competition, confirming that the regulator does not intend to challenge the steelmaker's acquisition of Baffinland and waiving a notification requirement for the deal.
Industry Canada has also told ArcelorMittal that the acquisition is not subject to review under the Investment Canada Act.
Baffinland's main asset is the attractive Mary River iron-ore project, on Baffin Island. The company had been looking for a partner to help develop and fund the $4-billion project, which includes port and rail development for the remote project.
ArcelorMittal, the world's biggest steel producer, agreed last month to offer C$1,10 in cash for each Baffinland share and C$0,10 each for the company's 2007 warrants.
The friendly agreement with Baffinland trumped an earlier hostile offer of $0,80 a share made by private-equity-backed Nunavut Iron Ore Acquisition.
Nunavut Iron Ore has since extended its own bid, but has not increased the price being offered.
The offer will be open until 11:59 Toronto time on December 20, unless withdrawn or extended.
Shares in Baffinland closed unchanged on Monday, to C$1,14 apiece by 15:59 in Toronto.
Source: stone crusher
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