Rothschild's battle of Bumi

BUMI PLC founder Nat Rothschild is reportedly forming a consortium to counter-bid for the mining firm he set up against the powerful Indonesian Bakrie family.
Rothschild's battle of Bumi Rothschild's battle of Bumi Rothschild's battle of Bumi Rothschild's battle of Bumi Rothschild's battle of Bumi

Courtesy of Bumi Plc.

Noel Dyson

The London-listed company announced to the market that the spike in its share price on November 2 was due to media reports on a “possible proposal from Nat Rothschild”.

The company said it had not received any such proposal.

Its shares rose to 2.83 pounds ($US4.53) – still well off their £10 listing price.

According to reports in The Guardian Rothschild plans to team up with Indonesian presidential candidate Prabowo Subianto, among others, to fend off the Bakrie bid for Bumi.

Ironically, the Bakrie family includes Aburizal Bakrie, who is also an Indonesian presidential candidate.

Bumi PLC has stakes in Indonesian coal miners Bumi Resources and Berau Coal Energy.

Berau is Indonesia’s fourth-largest coal mine.

The Bakrie family has offered $US1.4 billion to buy those stakes back.

The problems began when Bumi PLC launched an independent investigation into financial irregularities at Bumi Resources.

Within hours of the investigation being announced, Bumi Resources chief executive officer Ari Hudaya tendered his resignation from the Bumi PLC board.

Bumi PLC has a 29% stake in Bumi Resources and an 85% stake in Berau.

Rothschild quit his post as a non-executive director of Bumi PLC after the Bakrie offer appeared.