Ghana voices fears over Ashanti talks

Ghana has no objection to merger talks between Ashanti Goldfields and its bigger rival AngloGold Ltd if the government's strategic interests are not compromised, the information minister said on Friday.

A week ago, the two companies announced they were in talks to create the world's biggest gold producer.

The Ghanaian government holds a 17 percent stake in Ashanti, including a golden share which allows it to block any deal.

"Our position is this: we have no objection to the board and management of the two companies proceeding with their negotiations provided that the strategic interests of Ghana, especially the golden share, are not compromised," minister Nana Akomea told Reuters in Ghana's capital Accra.

Under the deal, Ashanti shareholders would receive 26 shares in AngloGold for every 100 Ashanti shares held.

Ashanti said last week talks were at a very sensitive stage but declined to comment on the view of the Ghanaian government.

Analysts in Ghana have said the government would likely face attacks both from opposition parties and Ghanaians if it was perceived as selling out.

Ashanti came close to a merger in 1999 with Lonmin, but the deal was scuffled chiefly due to opposition from the government of former president Jerry Rawlings.