Baffinland Iron Mines Receives Hostile Takeover Bid

22 September 2010 (Last Updated September 22nd, 2010 18:30)

Canada's Baffinland Iron Mines said it has received a hostile bid of C$274m (US$265m) from Energy & Minerals Group. The offer of C$0.77 a share is at a premium of about 43% to the closing of stocks on 21 September. Baffinland has been looking for a partner to fund its flagship

Canada's Baffinland Iron Mines said it has received a hostile bid of C$274m (US$265m) from Energy & Minerals Group.

The offer of C$0.77 a share is at a premium of about 43% to the closing of stocks on 21 September.

Baffinland has been looking for a partner to fund its flagship C$3.7bn Mary River project, which is expected to produce 18 million tons a year.

Baffinland Iron Mines chief executive Richard McCloskey said the company is not up for sale.

The company will form a special committee to review the offer.

Energy & Minerals Group already owns a 6% stake in Baffinland Iron Mines.