ArcelorMittal increases offer for Canada's Baffinland

PARIS: ArcelorMittal, the world's largest steel producer, said Friday it had increased by 27 percent its offer to buy Canadian mining company Baffinland to match a rival bid by Nunavut Iron Ore.

The increased cash offer of 1.40 Canadian dollars per share raises it valuation of Baffinland to 550 million US dollars (415 million euros).

"The increased all cash offer represents a premium of approximately 27 percent to ArcelorMittal's original offer price of 1.10 Canadian dollars per common share," the Luxembourg-based company said in a statement.

ArcelorMittal emphasised its cash offer is for all of Baffinland's shares, while Nunavut's was only partial.

ArcelorMittal has already locked up a quarter of Baffinland's shares while Nunavut has 10.5 percent.

Baffinland specialises in the development of iron ore sites along the Mary River in northern Canada.

ArcelorMittal has sought to boost self-sufficiency in iron ore in order to lessen its dependence on the three main producers, BHP Billiton, Vale abd Rio Tinto.

ArcelorMittal's revised offer expires on January 10.