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Paulson Buys AngloGold Stake

Diversified miner Anglo American PLC Tuesday said it sold off its remaining stake in AngloGold Ashanti Ltd. to investment funds managed by Paulson & Co. Inc. for $1.28 billion.

Anglo American's long-standing policy has been to sell down its stake in the South African gold miner. But the disposal of a large block of shares was an "opportunistic" sale made after advisers at Deutsche Bank brought Anglo American in contact with the U.S. hedge fund, people with knowledge of the transaction said.

As recently as Feb. 19 Anglo said in a regulatory filing that it "intends to remain a significant shareholder in AngloGold Ashanti in the medium term."

Uncertainty about when Anglo American would sell down its stake weighed on AngloGold's shares.

"The Anglo American share overhang, with its depressing effect on our share price, has now gone and I'm excited about the opportunities that lie ahead for us," AngloGold CEO Mark Cutifani said.

Mr. Cutifani welcomed Paulson, led by President John Paulson, as one of AngloGold's biggest shareholders. The fund bought 39.91 million shares from Anglo American, or 11.3% of outstanding shares.

Paulson spokesman Armel Leslie said: "We believe Anglogold Ashanti is one of the best managed and most undervalued of the major global gold mining companies. We look forward to the implementation of their global expansion strategy."

Anglo American said it would use the funds for general corporate purposes. The miner's net debt -- about $11 billion at the end of 2008 -- has weighed on its share price.

Anglo American now holds no shares in the gold miner, the company said. Paulson paid $32 per share.

Anglo American has reduced its stake in AngloGold several times since announcing it would relinquish its majority holding in 2006. Anglo held 42% of AngloGold in April 2006, 17.3% as of Oct. 9, 2007 and 13.3% as of Feb. 5, and 11.88% as of Feb. 18, according to filings with the U.S. Securities and Exchange Commission.

http://online.wsj.com/article/SB123731367777459083.html

http://seekingalpha.com/article/127450-paulson-bets-on-inflation-ups-ante-in-gold?source=yahoo

A gold bubble may well be coming our way

With the US and other countries monetising budget deficits, the chance of rapid inflation has surged.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5023195/A-gold-bubble-may-well-be-coming-our-way.html

Buy Paulson, Short Buffett

http://news.goldseek.com/RickAckerman/1237356000.php