ArcelorMittal ups Baffinland offer

Global steel giant ArcelorMittal has upped the ante in a takeover war for Baffinland Iron Mines Corp. , a Canadian company that's developing a major iron mine in the Far North.

Luxembourg-based ArcelorMittal has increased its bid to $1.40 per share in cash. It's also offering 10 cents per warrant, as in its previous offer.

The European company's offer made on Friday is a 27 per cent premium on its original price, and matches another offer made by rival takeover hopeful Nunavut Iron Ore Acquisition Inc. on Wednesday.

ArcelorMittal is offering to buy 100 per cent of Toronto-based junior miner Baffinland, while Nunavut Iron wants to acquire just 60 per cent of the company.

The two potential buyers are fighting to control Baffinland's Mary River project on northern Baffin Island, Nunavut, which contains several million tonnes of iron ore reserves.

"Our offer ensures shareholders receive 100 per centcash 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," ArcelorMittal mining boss Peter Kukielski said in a statement.

Demand for iron ore, which is used to make steel, has bounced back since the recession.

ArcelorMittal, the world's largest steel producer, has been building up its iron ore reserves as it seeks to protect itself against price increases in the metal.