UPDATE 1-Ghana group asking court to block Vodafone deal

(Adds quotes, details)

By Kwasi Kpodo

ACCRA, July 31 (Reuters) - A group of Ghanaians opposed to the proposed $900 million purchase of a majority stake in Ghana Telecom by Britain's Vodafone Group Plc (VOD.L) launched legal proceedings on Thursday hoping to block the takeover, the group said.

The group, which calls itself "Concerned Ghanaians," lodged notice with Ghana's attorney general, a first step towards filing a writ that could lead to a court order banning the deal, Bright Akwetey, a lawyer and leading opposition figure, told Reuters.

"We are asking the court to revoke the agreement entered into with Vodafone because it is not in the interest of the people of this country," Akwetey said.

Asked when a writ would be filed with a court, Akwetey replied: "Very soon, in a couple of days," although he could not say when a court might make a decision on the case.

Ghana's parliament, which must give its approval for the deal to go through, deferred a decision when it debated the matter just before it began its summer recess on July 18.

Parliamentary officials have said an extraordinary session of parliament will be called on Aug. 12 to discuss the Vodafone offer.

"We think that if this case is pending in court and we're asking for a revocation of the agreement, Parliament will do well to advise itself to wait for the outcome of the case before it continues," Akwetey said.

The July 18 parliamentary debate heard vocal criticism of the deal from opposition parliamentarians eager to exploit any signs of government weakness ahead of presidential and parliamentary elections in December.

Opponents say Vodafone's bid is too low for a 70 percent stake in a company which currently holds a monopoly on fixed phone lines and a 17 percent mobile market share in one of West Africa's most promising economies, a gold and cocoa exporter.

Critics also say the government should not enter into such a big deal so soon before the December elections, when President John Kufuor will stand down after two terms in office.

"We think that the government is recklessly causing financial loss to this country by giving away Ghana Telecom to Vodafone," Akwetey said on Thursday.

"We do not think that the deal is transparent. We also think that due process was not observed in the process that led into the agreement," he said, saying that although the agreement was signed in July, commitments had been made two months earlier.

However, some analysts have questioned whether Ghana is likely to find a higher bid than Vodafone's, given Ghana Telecom is operating at a loss and has accrued some $400 million of debts.

Investment bank Renaissance Capital warned last week that parliament's delay might also contribute to further depreciation of Ghana's cedi currency GHS= due to lower foreign inflows. (Reporting by Kwasi Kpodo; editing by Alistair Thomson and Gerald E. McCormick)