TORONTO— The Canadian Press

Published Monday, Jan. 17, 2011 11:13AM EST

Last updated Monday, Jan. 17, 2011 11:25AM EST

The board of Baffinland Iron Mines Corp. (BIM-T1.52-0.03-1.94%) announced its support Monday for a joint takeover bid for the company by ArcelorMittal and a private equity fund that values the company at $590-million.

ArcelorMittal and Nunavut Iron Ore Acquisition had been in a takeover fight for Baffinland, but called a truce Friday with the joint bid.

The world's largest steel producer and Nunavut Iron have offered $1.50 per share for all of the Canadian company.

The offer also includes 10 cents per Baffinland warrant.

The proposal would see ArcelorMittal own 70 per cent of Baffinland and Nunavut Iron, which currently holds 10 per cent, increase its stake to 30 per cent.

Richard McCloskey, Baffinland's chairman and acting chief executive and president, had raised concerns about the fairness of the deal Friday because Nunavut Iron would have the opportunity to participate in a joint venture while other shareholders would not.

However, on Monday, Baffinland's board said it had been assured Nunavut Iron would be responsible for its share of the purchase costs and development of the Mary River project.

The board also said ArcelorMittal is not providing any financial assistance or incentive to Nunavut under the proposal. Source http://www.theglobeandmail.com/globe-investor/baffinland-board-supports-takeover-bid/article1872859/