Lonmin to reject $1.5bn Ashanti bid
Sunday 10 August 2003
Lonmin, the mining group headed by veteran banker Sir John Craven, is expected to give the cold shoulder to an audacious $1.46bn (£901m) bid for Ashanti Goldfields made by the London-listed mining group Randgold Resources late on Friday.
The bid outgunned a $1.1bn offer for the Ghana-based Ashanti made a few days earlier by AngloGold, the world's second largest gold-mining group.
However, two investors will determine the future of Ashanti: the Ghanaian government, which has 19.5 per cent of the group's shares and has said it will decide on any bids next month, and Lonmin, which owns 32 per cent of Ashanti.
Sir John has indicated that he wants to sell out of Ashanti and has agreed to accept AngloGold's bid. This would have given Lonmin about $330m in cash as well as seeing $75m, which Ashanti owes to the British company, repaid.
The Randgold offer would merely give Lonmin a reduced stake in a gold mining company. Sir John has indicated he does not want to accept shares and will push Randgold to come up with a cash alternative.
The recent rise in Randgold's share price has also raised concern. It stood at just 955p on 16 July and reached nearly 1,400p last week before closing on Friday at 1,355p.
Mark Bristow, Randgold's chief executive, said the share price movement was one of the reasons the company disclosed its approach to Ashanti.
Dr Bristow has been in Ghana talking to Ashanti in an attempt to get it to recommend its bid. "We are working through all the necessary channels," he said.
AngloGold's finance director, Jonathan Best, dismissed Randgold's bid, saying: "I doubt whether the market will see it as a superior offer."
- 1 Autism 'caused by genetics', study suggests
- 2 What happens to your body when you give up sugar?
- 3 Why you should never make assumptions about people with autism
- 4 Tourist films plane's descent just metres above packed Caribbean beach
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Tourist films plane's descent just metres above packed Caribbean beach
Bali nine: Welcome to 'Execution Island' – the Indonesian holiday resort where foreigners are sent to die
How Homer Simpson discovered the Higgs boson over a decade before scientists
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Harrison Ford plane crash: Star Wars actor 'seriously injured' after light aircraft crash lands
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
Ex-head of MI6: 'We shouldn't kid ourselves that Russia is on a path to democracy'
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
Nigel Farage promises Ukip will not 'stigmatise' would-be migrants – and says he wants 'everyone to speak the same language'
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...
£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...