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by Mike Caswell

The Ontario Securities Commission has launched an insider trading case against Jowdat Waheed and Bruce Walter, two Toronto men who were behind the March, 2011, takeover of Baffinland Iron Mines Ltd. The regulator claims that Mr. Waheed, who was a consultant to Baffinland up until months before he launched a takeover bid for the company, knew about confidential mining plans and negotiations. These included an undisclosed joint venture the company was exploring with Luxembourg mining giant ArcelorMittal S.A.

The notice of hearing comes less than a year after Mr. Waheed and Mr. Walter completed a takeover of Baffinland through a private company they formed, Nunavut Iron Ore Acquisition Inc. The pair, both former executives at Sherritt International Corp., initially offered 80 cents a share. After a bidding war with ArcelorMittal, the two companies agreed to a joint $1.50-per-share bid, in which Nunavut Iron Ore ended up with 30 per cent of Baffinland and ArcelorMittal the remainder. According to the OSC, Mr. Waheed used information to form his initial bid that was not available to the public.

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