Former shareholders of Baffinland Iron Mines Corp. are launching a class-action suit in Ontario, claiming they didn't get the full picture during a heated bidding war that lead to the company's takeover.
The suit alleges there were omissions or misstatements in documents filed ahead of Baffinland's purchase by ArcelorMittal SA and Nunavut Iron Ore Acquisition Inc. in March.
ArcelorMittal and Nunavut Iron were originally bidding rivals but later joined forces to acquire Baffinland, a Toronto-headquartered company that's developing a major iron deposit in Canada's Far North.
Under a joint offer that valued Baffinland at about $590-million, the two buyers agreed to split ownership with ArcelorMittal, owning 70 per cent and the rest owned by Nunavut Iron Ore.
The takeover was completed in March and Baffinland's shares have since been delisted from the Toronto Stock Exchange.