Size prevails

15 October 2003

But AngloGold has the firm support of Ashanti s largest investor, Lonmin. Randgold looks outmanoeuvred. The South African miner has upped its $1.4bn bid. This may not be a knockout offer. It s still lower than Randgold s.

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South African gold miner AngloGold sweetened its $1.4bn offer for Ashanti Goldfields and the Ghanaian firm recommended the bid against Randgold's rival offer.

Anglogold's new bid values Ashanti stock at 0.29 per AngloGold share, or $10.89 per share, versus its former offer of 0.26 AngloGold shares.

Randgold's rival offer of 0.5 shares, values Ashanti at $11.47 per share.

Although that is higher than AngloGold's new offer, AngloGold received an irrevocable commitment from Ashanti's biggest shareholder, Lonmin, which owns almost 28%.

The platinum producer said it would not accept any offer from Randgold unless it was a fully underwritten cash bid that had also been recommended by Ashanti's board.

The Ghanian government, which owns 17% of Ashanti, has yet to say which bid it prefers.

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