Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, December 17, 2010

Article Excerpt

PLEASE NOTE: This is our last Hotline for 2010. Our next Hotline will go out on Friday, January 7, 2011. BAFFINLAND IRON MINES, $1.32, symbol BIM on Toronto, has received a revised hostile, $1.35-a-share takeover offer from Nunavut Iron Ore Acquisition. Baffinland earlier rejected an $0.80-a-share takeover offer from Nunavut. That bid was followed by a $1.10-a-share friendly offer from Luxembourg-based ArcelorMittal, the world’s largest steelmaker. Nunavut is led by two former senior executives at Sherritt International Corp. Their bid is funded by Energy & Minerals Group, a U.S.-based private equity firm. Nunavut’s new offer is for just 50.1% of Baffinland’s outstanding shares, including the 8.8% of the company’s shares that Nunavut already owns. If its bid is successful, Nunavut also proposes to pay the remaining 49.9% of Baffinland shareholders a 2% gross royalty on production from a mine at Baffinland’s Mary River project. Baffinland is now trading at $1.32, or just below Nunavut’s bid. This indicates that investors are somewhat skeptical…