Mines & Energy Minister Gave His Blessing

Ghana's mines and energy minister, Fred Ohene-Kena, gave his blessing to a merger between Ashanti and Lonmin last week, telling the pro-government Daily Graphic newspaper that it would improve the gold miner's competitive position.

Ashanti's board met in in London on Saturday to discuss the company's future.

Industry sources said the two sides had been talking since last October but the issue had come to a head following massive losses on Ashanti's hedge book triggered by a sharp rise in bullion prices.

Trading in Ashanti shares was suspended on Monday prior to the announcement of an offer being received. The shares were last quoted at $4, after trading at more than $10 last week before the company revealed the hedge book problems.