Rothschild ups stake in bid to remove Bumi board

Financier Nathaniel Rothschild has bought 16m pounds-worth of shares in Indonesian miner Bumi as he ups the ante ahead of a battle to overhaul the company's board.

The deal to buy 5.2m more shares raises Rothschild's voting stake from 14.8% to 18.2%.

Last week the Bumi co-founder called for a vote to replace 12 of the company's 14 board members and to reinstall himself as a director.

His long-standing complaint is the board has failed to protect the rights of minority shareholders.

Rothschild has the support of Bumi investors Taube Hodson Stonex Partners, Schroders and Sofaer Capital, who between them own 8.1% of the firm.

The company's Chairman, Samin Tan, who is also one of its biggest investors, said he would fly to London to convince investors the current board would best serve the company.

The company is currently waiting for the results of an investigation into "potential financial irregularities" at its Indonesian subsidiary, PT Bumi Resources.

MM