AngloGold gains Ashanti advantage

... as it raises bid for Ashanti
Ashanti Goldfields, the Ghana-based gold miner, today advocated to its shareholders an improved $1.4 billion offer from AngloGold, its much larger South African peer.

AngloGold, the world's second-biggest gold producer, upped its offer from 26 to 29 of its own shares for every 100 Ashanti shares in a deal worth about $1.4 billion.

Ashanti has backed the deal ahead of a rival bid from the London-based Rangold Resources. Rangold had said it would consider raising its bid in the face of competition. The company said yesterday it would be "reviewing its position."

Lonmin, the platinum producer which owns about 28 per cent of Ashanti, has given its support to the AngloGold bid, though any deal would have to be approved by regulators, shareholders and the government of Ghana, which owns 17 per cent of Ashanti.

In terms of monetary value, Rangold's all-share offer stood yesterday at $1.5 billion. However, analysts have questioned whether the company has the necessary expertise to manage Ashanti effectively.