Johannesburg - Randgold Resources, the mid-tier gold company that has made an audacious $1.5 billion play for Ashanti Goldfields, may have been invited by the government of Ghana to make the alternative bid.

Randgold's announcement at the weekend that it had made an indicative merger proposal at a ratio of one Randgold share to two Ashanti shares has rattled the market, which had only just started to digest AngloGold's $1.1 billion, all-share offer for the Ghanaian gold producer.

AngloGold's bid, at a ratio of 26 AngloGold shares for every 100 Ashanti shares, has generally been favoured by mining analysts, who are perplexed by Randgold's sudden expression of interest.

Forced into making an announcement on its intentions, Randgold said yesterday that balance sheets were not all that important.

Mark Bristow, the chief executive of Randgold, said: "What is important is the value of the underlying assets."

Declining to comment on Randgold's dealings with the Ghanaian government, Bristow said in reply to a question on whether the company was asked to make the alternative offer, that Randgold and Randgold & Exploration (R&E) were experienced at business in Africa.

Poku Kyei, the special adviser to Ghana's minister of finance, said yesterday that he believed the Randgold chief executive had made a presentation to Ghana's minister of mines, Cecilia Bannerman.

"We are looking at the proposal which would be of the most benefit to Ashanti," said Kyei.

Cash-strapped Ashanti needed to be helped out of a financial squeeze and, with its intention of deepening its Obuasi mine below 1 000 metres, some technical expertise.

Kyei said a partner would have to bring along the cash to achieve these objectives.

The partner would also be expected to contribute to social development in the country.

Randgold said its rationale for the merger was the "creation of a major independent pan-African gold business" where Ashanti shareholders would end up holding 70 percent of the new company and Randgold shareholders 30 percent.

Roger Kebble, the chairman of R&E, said the JSE Securities Exchange-listed company's 45 percent holding in Randgold would shrink to 12 percent or 13 percent if the deal went ahead.

Randgold proposed that the new company, which would keep Ashanti's 100-year-old name, would relaunch in London but would keep Ghana as its operational centre.