Platinum miner Lonmin is almost certain to sell its stake in Ashanti if AngloGold's bid for the firm is successful.

That is the view of analysts at Merrill Lynch who are confident that Lonmin will soon sell off its 27.6 per cent stake in Ashanti.

The idea has further strengthened following AngloGold's recent increased offer for Ashanti, valued at around US$360 million.

'While in the past Lonmin has returned excess cash to shareholders, we foresee at least part of the proceeds of this transaction being used to reduce debt or finance the recently announced Lonmin/Impala Platinum deal,' an investment banker told Business Day.

To finance the Implats deal, Lonmin needs $357.5 million in order to facilitate the purchase of a further 9.1 per cent holding in Lonplats from Implats, as well as $115.5 million to finance the new empowerment vehicle called Newco.

Merrill Lynch also reflected favourably on the chances of the Implats deal taking shape relatively soon.

'Lonmin is presently trading at 134 per cent to our net present valuation. While the stock is trading at a premium, we feel that the positives of the proposed Impala transaction and positive sentiment to cyclical companies may support the share price around the present levels,' the firm concluded.

Merrill Lynch recommendation for Lonmin's share is currently neutral.