Ashanti declines comment on bids report

JOHANNESBURG, Aug 18 (Reuters) - Ghanaian gold miner Ashanti Goldfields ASL.N AGC.GH on Monday declined comment on a newspaper report that two Canadian firms were considering joining a billion dollar bidding war over its future. "We don't comment on market rumour," a spokesman for the company said.

Britain's Independent newspaper said at the weekend that Barrick Gold Inc HCX.TO and Placer Dome PDG.TO were mulling competing with world number two gold producer AngloGold ANGJ.J and London-based Randgold RRS.L in bidding for Ashanti.

Barrick, the world's third-largest gold producer based on 2002 production levels, and Placer Dome, the seventh-largest, were not immediately available for comment.

Since May, when news of talks between AngloGold and Ashanti hit the market, South African media have speculated that Placer Dome could be a possible suitor.

Randgold, half of Ashanti's $1.2 billion current market value, stepped in to bid for the government-controlled miner a week ago, shaking up a previously agreed deal with AngloGold. Randgold was not immediately available to comment on Monday.

AngloGold has offered 26 of its shares for every 100 Ashanti shares, while Randgold has said it will give Ashanti shareholders one of its shares for every two they hold, worth some $1.46 billion at its debut. The difference between the two bids has since narrowed to around five percent.

The Ghanaian government, which holds 17 percent of Ashanti and a crucial veto, has not commented so far on the Independent report. The government said on Friday it welcomed any offers and would wait for a report on current bids by adviser Societe Generale before making any decisions.

Lonmin LMI.L , which holds a 28 percent stake in Ashanti, initially backed AngloGold's offer, but after Randgold stepped in the London-based platinum producer said it would wait for Ashanti's decision.

Investors in Ashanti contacted by Reuters last week suggested U.S. companies could be reluctant to step in to operate in the continent, where working practices are fraught with difficulties and operational methods are different.