Randgold says offer 'superior'

Johannesburg - London and Nasdaq-listed Randgold Resources, 42.9% held by Randgold & Exploration, sees its offer to merge with Ghana's Ashanti Goldfields as being superior to that of world number two gold miner AngloGold, Randgold Resources chief executive officer Mark Bristow said on Tuesday.

The company made an indicative offer for Ashanti on August 8 and on September 23 formalised its offer at one of its shares for every two Ashanti shares.

"Our proposal is a superior one and one that is totally different from AngloGold's.

It is a proposal AngloGold can't make," Bristow said during an investor teleconference late on Tuesday.

The merger of Ashanti and Randgold will create a gold producer with annual output of two million ounces, as well as proven and probable reserves of 25m ounces.

"Randgold & Exploration is very supportive and are looking to get the deal done.

"We are fully behind the deal," Randgold & Exploration director Roger Kebble said during the teleconference.

The market perception of the offer by Randgold Resources for Ashanti has moved from being termed as a "cheeky one" to a serious one, Kebble added.

At 17:50, Randgold Resources was quoted in the US at $22.60 up $0.40 from Monday's close of $22.20 a share, while AngloGold was last quoted on the New York Stock Exchange at $36.36, up $0.31 from Monday's close of $36.05.

Ashanti was also up in the US at $10.50, $0.19 higher than the previous close of $10.31 a share.

Regarding Randgold's share performance, Bristow said since listing on the Nasdaq in 2002 at $6.30 a share, Randgold Resources' share price has climbed and remained over $20 a share.

"We have built our own business and endured challenges and down cycles without destroying shareholder value," Bristow said.

The Ghana government, which has 16.9% in Ashanti and a controlling golden share, and the Ashanti management never approached Randgold and instead the interest in the Ghanaian gold miner came solely from Randgold management, Bristow said.

Regarding Lonmin , which has a 27.6% stake in Ashanti, and intends to exit the gold miner, Bristow said it would be possible for Lonmin to exit Ashanti and get full value for its interest.

"We intend to create an independent pan-African gold miner - the premiere gold business outside South Africa," Bristow said.

The merged Ashanti-Randgold entity would be listed in Ghana, London and the US.

The new company would be called Ashanti Goldfields, as the name Ashanti is a very good brand, Bristow said.