Nunavut Iron Ore is considering how to react after No. 1 steelmaker ArcelorMittal on Friday matched the private equity-backed company's takeover bid for Baffinland Iron Mines , a junior miner sitting on a giant iron ore deposit in the Canadian Arctic.

It would be fair to assume that what they've done was well within the expected range of responses from them so we will be considering our options, Nunavut Chairman Bruce Walter told Reuters in an interview.

We are going to see how the market reacts and talk to shareholders and see where everyone's views are and go from there, he said, adding that the Nunavut offer was a bet on the company's future and was of greater value to long-term holders of the stock.

ArcelorMittal is now offering C$1.40 a share for all the shares of Baffinland, valuing the company at C$550 million ($550 million).

Nunavut Iron earlier this week raised its offer to C$1.40 a share for 60 percent of Baffinland's shares.