Baffinland's board of directors has approved the Offer and continues to recommend that Baffinland's securityholders tender their Common Shares and 2007 Warrants to the Offer. In addition, Baffinland has authorized the adoption of a new shareholder rights plan having substantially the same terms as the shareholder rights plan in effect immediately prior to 19 November, 2010, which new shareholder rights plan may not be waived by Baffinland until immediately prior to the time ArcelorMittal is first permitted to take-up securities deposited to the Offer unless ArcelorMittal otherwise requests that it be waived earlier.
Baffinland's non-solicitation covenants and ArcelorMittal's right to match any unsolicited superior proposal under the Support Agreement remain unchanged.
Peter Kukielski, Head of Mining and Member of the Group Management Board of ArcelorMittal said: "The amended Offer allows Baffinland shareholders to realize full and fair value for their interest in Baffinland. We believe our Offer is clearly superior to Nunavut Iron's partial and incomplete Offer because it does not expose the remaining shareholders with financing risk for the project and potential dilution to their investment. In contrast to the Nunavut Iron offer, our Offer provides certainty to all shareholders of Baffinland. ArcelorMittal is committed to developing the Mary River property and has the technical and project management expertise to develop the project for the benefit of all stakeholders."
On 13 December 2010 ArcelorMittal announced that no further conditions relating to regulatory approvals were outstanding.
As previously announced, ArcelorMittal has entered into a lock-up agreement with Baffinland's largest shareholder, Resource Capital Funds, pursuant to which it has tendered all of its Common Shares and 2007 Warrants, representing approximately 22.5% of the outstanding Common Shares (on a fully diluted basis), to the Offer. In addition, each of the directors and officers of Baffinland have tendered all Common Shares and 2007 Warrants held by them, representing a further approximately 2.4% of the outstanding Common Shares (on a fully diluted basis), to the Offer pursuant to lock-up agreements with ArcelorMittal.
ArcelorMittal has today mailed a notice of variation and extension of the Offer with respect to the increased Offer to Baffinland securityholders.
ArcelorMittal has retained Georgeson Shareholder Communications Canada Inc. as information agent in connection with the Offer. Computershare Investor Services Inc. is the depositary for the Offer. Any questions or requests for assistance or further information on how to tender Common Shares or 2007 Warrants to the Offer may be directed to, and copies of the above referenced documents may be obtained by contacting, the information agent at 1-888-605-7641 or by email at [email protected] or by contacting the depositary at 1-800-564-6253 (North America) or 1-514-982-7555 (overseas), or by email at [email protected]. Securityholders whose Common Shares or 2007 Warrants are registered in the name of a broker, investment dealer, bank, trust company or other nominee should contact such nominee for assistance in depositing their Common Shares and 2007 Warrants to the Offer.
Information Agent for the Offer
Toll Free (North America): 1-888-605-7641
Collect (Overseas): 1-781-575-2168
E-Mail: [email protected]
This document contains forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates, including non-cash impairment charges, net financial debt and net debt to EBITDA leverage ratio, statements regarding plans, objectives and expectations with respect to future operations and statements regarding future performance generally. Forward-looking statements may be identified by the words "will," "believe," "expect" or similar expressions. Although ArcelorMittal's management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal's securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the "SEC") made or to be made by ArcelorMittal, including ArcelorMittal's Annual Report on Form 20-F for the year ended 31 December, 2009 filed with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events or otherwise.