ArcelorMittal's Baffinland bid stands

European steel giant ArcelorMittal said Tuesday it won't increase its takeover bid for Baffinland following Nunavut Iron Ore Acquisition's decision to increase its rival offer.

ArcelorMittal said in a statement it will stay with its bid of $1.40 offer per share, which it made last week in its attempt to acquire 100 per cent of Baffinland.

ArcelorMittal's bid matched Nunavut Iron's, which is only seeking to increase its stake in Baffinland to 60 per cent from about 10 per cent.

Both offers value Baffinland at about $550.7 million.

ArcelorMittal said its offer "remains superior to Nunavut's coercive partial bid."

However, ArcelorMittal has been known to change course.

It had previously said its previous offer of $1.25 per share would stand and expire Dec. 29, but that changed after Nunavut increased its bid.

Last week, Baffinland's directors recommended ArcelorMittal's offer to shareholders because it said selling to Nunavut Iron would leave only about 15 per cent of Baffinland shares to trade publicly on the market and have a negative effect on share value.

The two potential suitors are fighting to gain control of Baffinland's Mary River project on northern Baffin Island, which contains at least 865 million tonnes of iron ore.