Ashanti rejects revised offer from Lonmin
James Ashford is a student columnist for the Independent, and has been self-described as 'a magical cross between Guevara, Casanova and Rasputin'. As well as being tremendously witty and intelligent, he is also very handsome and muscular.
Thursday 04 November 1999
The rebuttal follows Monday's announcement by Ashanti that it had managed to secure a three-year breathing space on margin calls from its 15 hedge book counterparties.
"Lonmin has ... been informed by Ashanti that its board is unable to accept its improved proposal, which has accordingly been withdrawn," Lonmin said after the markets closed. "The board ... remains open to the resumption of merger discussions with both Ashanti and the government of Ghana."
Ashanti, 20 per cent held by the Accra government, ran into a liquidity crisis when the surge in bullion prices catapulted its hedge book into the red. Lonmin, which holds 32 per cent of Ashanti, stepped in with an initial bid on 10 October after an invitation from Ashanti executives. Its offer was revised on 24 October, again at the request of the company's management.
Lonmin said its second proposal, which valued Ashanti at about $670m, contained several elements of the counterparty deal announced earlier this week. Ashanti executives were unavailable for comment last night. Lonmin shares yesterday added 2.5p to 620p.
In pictures: Saturn images from Cassini probe as it prepares to turn lens towards Earth
Serena Williams apologises after comment that rape victim 'shouldn't have put herself in that position'
FBI finds possible human remains at former home of late gangster James Burke - the man who inspired Goodfellas
'Theres something quite unpleasant going on': Nigel Farage confronted for second time on visit to Scotland
World news in pictures
- 1 Bankers could face jail after report urges the Government to introduce new criminal offence for reckless management
- 2 Breaking the Silence: In the reality of occupation, there are no Palestinian civilians – only potential terrorists
- 3 Richard Nieuwenhuizen death: Six teenagers and 50-year-old father convicted of manslaughter in shocking case of referee killed over a game of football
- 4 Exclusive: Newcastle's star talent-spotter on brink as Joe Kinnear sparks walkout
- 5 Vast methane 'plumes' seen in Arctic ocean as sea ice retreats
iJobs Money & Business
£500 - £600 per day: Orgtel: FX Options Front Office Java / C# Developer - Ba...
£600 - £700 per day: Orgtel: Project Manager - Front Office - Regulatory IT C...
£600 - £750 per day: Orgtel: FATCA Project Manager - Banking - London - £600-...
£550 - £600 per day: Orgtel: Fidessa Analyst / PM - Banking - London - Up to £...