TORONTO/BRUSSELS (Reuters) – Two rival bidders for Baffinland Iron Mines have united in a C$590 million ($595 million) joint takeover offer, but the iron ore explorer’s chairman said he opposes the deal.

ArcelorMittal, the world’s largest steelmaker, and Nunavut Iron, backed by U.S. private equity, on Friday made a joint C$1.50-a-share offer for 100 percent of Baffinland. The offer marks the end of their four-month battle for control of the company’s huge Arctic iron ore deposit.

Baffinland shares rose nearly 3 percent to C$1.56 by Friday afternoon, suggesting that shareholders may not tender to the C$1.50 bid price.

Under the agreement, ArcelorMittal will buy all the outstanding shares of Baffinland but will end up owning 70 percent. Nunavut’s ownership, currently about 10.2 percent, will nearly triple to 30 percent.

“The respective parties were killing themselves without end-game in sight, and so both parties very much wanted the asset, and this is a splitting of the spoils so to speak,” said a source with direct knowledge of the offers.

The battle for Baffinland’s Mary River project has underscored the intensifying global race for resources as China, India and other emerging countries build roads, bridges and housing to meet the needs of their growing and more affluent populations.

Mary River, on remote Baffin Island in the Canadian Arctic, will produce enough high-grade iron ore to supply all of Europe for years, and is seen displacing other dominant producers due to its proximity to the continent.

TORONTO/BRUSSELS, Jan 14 (Reuters) – Two rival bidders for Baffinland Iron Mines (BIM.TO: Quote, Profile, Research, Stock Buzz) have united in a C$590 million ($595 million) joint takeover offer for the iron ore explorer, ending a four-month fight to control its huge deposit in the Canadian Arctic.

ArcelorMittal (ISPA.AS: Quote, Profile, Research, Stock Buzz), the world’s largest steelmaker, and Nunavut Iron, backed by U.S. private equity, on Friday made a joint C$1.50 a share offer for 100 percent of Baffinland.

Under the agreement, ArcelorMittal and Nunavut Iron will own 70 percent and and 30 percent of Baffinland respectively, Luxembourg-based ArcelorMittal said in a statement.

“The respective parties were killing themselves without end-game in sight, and so both parties very much wanted the asset and this is a splitting of the spoils so to speak,” said a source with direct knowledge of the offers.

The battle for Baffinland’s Mary River project has underscored the intensifying global race for resources as China, India and other emerging countries build roads, bridges and housing to meet the needs of their growing and more affluent populations.

Mary River, in the remote Canadian Arctic, will produce enough high-grade iron ore to supply all of Europe for years, and is seen displacing other dominant producers due to its proximity and ocean access to the continent. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For Baffinland map: r.reuters.com/suv75r

TORONTO/BRUSSELS, Jan 14 (Reuters) – Two rival bidders for Baffinland Iron Mines (BIM.TO: Quote, Profile, Research) have joined forces in a C$590 million ($595 million) joint takeover offer for the company, ending a months-long fight over its huge iron ore deposit in the Canadian Arctic.

ArcelorMittal (ISPA.AS: Quote, Profile, Research), the world’s largest steelmaker, and Nunavut Iron, backed by U.S. private equity, on Friday made a joint C$1.50 a share offer for 100 percent of Baffinland, with 393.4 million shares outstanding, fully diluted.

Under the agreement, ArcelorMittal and Nunavut Iron will own 70 percent and and 30 percent of Baffinland respectively, ArcelorMittal said in a statement.

“The respective parties were killing themselves without end-game in sight, and so both parties very much wanted the asset and this is a splitting of the spoils so to speak,” said a source with direct knowledge of the offers.

The battle for Baffinland’s Mary River project has underscored the intensifying global race for resources as China, India and other emerging countries build roads, bridges and housing to meet the needs of their growing and more affluent populations.

Mary River, in the remote Canadian Arctic, will produce enough high-grade iron ore to supply all of Europe for years, and is seen displacing other dominant producers due to its proximity and ocean access to the continent. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For Baffinland map: r.reuters.com/suv75r

BRUSSELS (Reuters) – Belgium’s caretaker government committed on Wednesday to pull its budget deficit below 4 percent of annual output this year in an urgent effort to reassure markets, and said it could outline cuts next month.

Belgium’s debt of nearly 100 percent of gross domestic product (GDP) and lack of new government for seven months has left investors wondering whether it could follow Greece and Ireland into a financing crisis.

The premium investors demand to hold 10-year Belgian government debt compared with the German benchmark has neared the euro lifetime high of 149 basis points in the past week, after the latest push to form a government failed.

Yves Leterme, who has stayed prime minister during a record 213 days of post-election deadlock, promised new cuts at the urging of King Albert II, who made an unusual intervention this week to call for a tighter budget.

“In mid-February we will take initiatives that will improve the deficit in such a way that we will exceed the targets agreed with the European Union,” Leterme told a news conference to present the 2010 budget figures.

Finance ministry officials said the budget might come into force in March.

David Schnautz, interest rate strategist at Commerzbank in London, said the plan to tighten the 2011 budget was not a game-changer for Belgian government debt. Investors still wanted to see a new government with full powers.

BRUSSELS, Jan 12 (Reuters) – Belgium’s caretaker government committed on Wednesday to pull its budget deficit below 4 percent of annual output this year in an urgent effort to reassure markets, and said it could outline cuts next month.

Belgium’s debt of nearly 100 percent of gross domestic product (GDP) and lack of new government for seven months has led economists and financial speculators to wonder whether it could follow Greece and Ireland into a financing crisis.

The premium investors demand to hold 10-year Belgian government debt compared with German equivalents has neared the euro lifetime high of 149 basis points in the past week, after the latest push to form a government failed. [ID:nLDE7051GI]

Yves Leterme, who has stayed as prime minister for a record 213 days since an inconclusive parliamentary election, promised new cuts at the urging of King Albert II, who made an unusual intervention this week to call for a tighter budget.

“In mid-February we will take initiatives that will improve the deficit in such a way that we will exceed the targets agreed with the European Union,” Leterme told a news conference to present 2010 budget figures.

Finance ministry officials said the budget might come into force in March. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

COLUMN-Ailing Belgium could be game changer [ID:nN1088581]

BRUSSELS, Jan 11 (Reuters) – Belgium’s caretaker government gave itself 24 hours on Tuesday to prepare budget cuts designed to calm financial markets unsettled by the country’s heavy debt and political crisis, after an unusual intervention by the king.

Yves Leterme, who has stayed on as prime minister for seven months since an inconclusive parliamentary election, will present plans for 2011 to key cabinet members on Wednesday.

With bond markets showing concern that political deadlock will prevent the country from tackling its debts, King Albert took the extraordinary measure of asking Leterme to draft a budget tighter than one already agreed with the European Union. [ID:nLDE70917R]

Belgium’s king, like other European monarchs, traditionally remains outside economic and political debate.

The current plan for a deficit this year of 4.1 percent of annual output (GDP), despite being likely to fall below the euro zone average, has not been enough to calm financial markets.

The premium investors demanded for holding 10-year Belgian government debt versus benchmark German equivalents rose 8 basis points to 145, just short of the record 149 points hit on November 30.

Belgian newspaper De Morgen said on Tuesday it expected Leterme to seek 4 billion euros of savings, bringing the budget down to 3.7 percent.

BRUSSELS (Reuters) – With the third highest debt in Europe, squabbling over a new government and the threat of the country breaking up, Belgium has prompted speculation that it could be the Greece of the North.

Economists say Belgium’s relatively low budget deficit, solid economic growth and high private savings ratio mean it is in better shape than nations on the euro zone’s periphery, and out of the firing line for now.

But that does not take into account herd-like financial markets, and the political situation in Belgium looks more fractured than, for example, in Spain and Portugal.

Paul De Grauwe, professor at the Catholic University of Leuven, wrote in newspaper De Standaard on Friday that on economic fundamentals alone Belgium appeared safe, but that the political impasse could destroy trust in the country.

“If we do not solve the political crisis quickly, then a financial crisis appears almost unavoidable,” he said.

Dutch- and French-speaking parties have been bickering for over five months since a June election, in which a party wanting the region of Flanders to split from Belgium won the most seats.

The caretaker government of Yves Leterme did pass a budget for 2010, but its mandate is essentially limited to keeping the country ticking over.

BRUSSELS (Reuters) – With the third highest debt in Europe, squabbling over a new government and the threat of the country breaking up, Belgium has prompted speculation that it could be the Greece of the North.

Economists say Belgium’s relatively low budget deficit, solid economic growth and high private savings ratio mean it is in better shape than nations on the euro zone’s periphery, and out of the firing line for now.

But that does not take into account herd-like financial markets, and the political situation in Belgium looks more fractured than, for example, in Spain and Portugal.

Paul De Grauwe, professor at the Catholic University of Leuven, wrote in newspaper De Standaard on Friday that on economic fundamentals alone Belgium appeared safe, but that the political impasse could destroy trust in the country.

“If we do not solve the political crisis quickly, then a financial crisis appears almost unavoidable,” he said.

Dutch- and French-speaking parties have been bickering for over five months since a June election, in which a party wanting the region of Flanders to split from Belgium won the most seats.

The caretaker government of Yves Leterme did pass a budget for 2010, but its mandate is essentially limited to keeping the country ticking over.

BRUSSELS (Reuters) – The Netherlands and Belgium successfully co-hosted the European championship a decade ago, but world governing body FIFA have expressed doubts that they can manage a 64-match, 32-team World Cup finals.

Though the bid comes from two of Europe’s smaller countries, they have a long common history, a common currency, a shared border and experience of hosting a tournament before, plus a combined area little more than half the size of the next largest rival, England.

The bidding team believe their promise of a compact World Cup has clear advantages, allowing fans to watch a match every day and making the tournament more green. The most far-flung stadiums are less than 400 kilometres apart.

The bid however, provides a test of whether FIFA is willing to offer the World Cup to smaller nations embarking on a co-hosting venture after its technical report said last week that such bids could pose “challenges.”

Despite that, the Dutch, in particular, argue that it is time for them to host.

The Netherlands, second in FIFA’s world rankings, are the highest-ranked nation not to have hosted a World Cup and have reached the World Cup final three times, including this year when they lost for the third time.

They have produced some of soccer’s greatest players including Johan Cruyff, Ruud Gullit and Marco van Basten.

BRUSSELS, Nov 25 (Reuters) – The Netherlands and Belgium successfully co-hosted the European championship a decade ago, but world governing body FIFA have expressed doubts that they can manage a 64-match, 32-team World Cup finals.

Though the bid comes from two of Europe’s smaller countries, they have a long common history, a common currency, a shared border and experience of hosting a tournament before, plus a combined area little more than half the size of the next largest rival, England.

The bidding team believe their promise of a compact World Cup has clear advantages, allowing fans to watch a match every day and making the tournament more green. The most far-flung stadiums are less than 400 kilometres apart.

The bid however, provides a test of whether FIFA is willing to offer the World Cup to smaller nations embarking on a co-hosting venture after its technical report said last week that such bids could pose “challenges”.

Despite that, the Dutch, in particular, argue that it is time for them to host.

The Netherlands, second in FIFA’s world rankings, are the highest-ranked nation not to have hosted a World Cup and have reached the World Cup final three times, including this year when they lost for the third time.

They have produced some of soccer’s greatest players including Johan Cruyff, Ruud Gullit and Marco van Basten.