Market report: Monday close

SOUTH African mining outfit

Randgold is ready to increase its $1.5bn (£893m) offer for Ashanti and chief executive Mark Bristow is said to be scouting around for potential merger partners as far afield as Canada, with Placer Dome and Barrick Resources being tipped.

Bristow is said to be ready with a 'materially improved' offer which South African sources say could value Ashanti at $1.7bn.

The move follows Ashanti's recommendation of an improved final offer from AngloGold, 5p lighter at 1189p, worth $1.4bn. But as Bristow has pointed out, the value of AngloGold's revised offer fell short of the existing terms from his company and below that of Ashanti's closing price on Friday in New York.

Lonmin, 8 1/2p down at 1017 1/2p and which owns almost 28% of Ashanti, has said it will not accept, or support, any proposal from Randgold unless it includes a fully underwritten cash alternative. Both bids will have to obtain the permission of Ghana's government.

The rest of the market posted modest gains after a slow start. The FTSE 100 index rose 3.5 points to 4347.5. Property developer Land Securities added 1/2p to 921 1/2p after broker Merrill Lynch downgraded from buy to neutral. The shares have risen 10% during the past three weeks and have come up almost 30% from their low of 679 1/2p in March.

More and more investors are thinking about the possibilities and implications of real estate investment trusts (REITs), and company statements have begun to anticipate an increase in activity in office markets, says Merrill.

But the broker says these factors have been priced in. To justify a buy rating, Merrill said it would have to set a price target of 1029p.

Merger twins Granada, down 1/2p at 115 1/2p, and Carlton Communications, off 3p at 213 3/4p, came under increased pressure from institutional shareholders which are objecting to Michael Green, boss of Carlton, being appointed chairman of the enlarged company. Ten institutions, accounting for almost half of both companies' shares, want Green's head on a platter by tomorrow. But the Carlton board is resisting and institutions are likely to press for an extraordinary general meeting.

AIM-listed Cambrian, 1/2p better at 44p, has become the latest mining outfit to turn to the market for extra funds. It is raising £1m with a placing of 2.6m shares at 38p to Madoff Securities International. That will give Madoff a stake of almost 12%. Cambrian wants the money to enhance its existing business and investigate further opportunities.

Jarvis came under selling pressure, falling 11p to 290p after the two Tube derailments at the weekend. Jarvis, criticised over railway maintenance, resigned from several Network Rail contracts earlier this month. It said the rest of its business had begun to suffer.

Lastminute continued to lose ground, down 8 1/2p at 276 1/2p in the wake of last week's gloomy view of current trading from fellow online operator eBay in the US. Shares of Overnet Data were suspended on AIM 12 1/2p higher at 50 1/2p pending an announcement.