Gov't to name adviser for AngloGold/Ashanti deal

DURBAN, South Africa - Ashanti Goldfields said on Wednesday the Ghanaian government planned to hire a financial adviser to assist in negotiations on the company's proposed merger with South Africa's AngloGold Ltd .

"We were notified officially by the government yesterday (Tuesday) of its intention to appoint a financial adviser," Sam Jonah, Ashanti Chief Executive, told Reuters on the sidelines of an economic conference in Durban.

"We think this is a very good development," said Jonah, who gave no further details on the adviser.

AngloGold announced in May it was in talks to buy Ghana-based Ashanti in a deal that, if successful, would make the South African company the world's biggest gold producer with combined annual output of 7.6 million ouncnes.

AngloGold said on May 16 it was offering 26 of its own shares for every 100 Ashanti shares.

A key issue in any deal is the Ghana government's 17 percent stake in Ashanti, including a golden share allowing it to veto the takeover.

Ghana's information minister said last month the government had no objection to the merger talks as long as the state's strategic interests were not compromised.

Sources close to the deal in Ghana have said AngloGold was prepared to let the government retain its golden share for transactions involving the combined company's Ghanaian assets. AngloGold has declined to comment.