Rothschild 'wrong on Bumi deal'

Financier Nat Rothschild is 'completely, 100 per cent wrong' about the controversial deal that could end the feud at Indonesian mining firm Bumi, according to the firm's Deputy Chairman.

Financier Nat Rothschild is 'completely, 100 per cent wrong' about the controversial deal that could end the feud at Indonesian mining firm Bumi, according to the firm's Deputy Chairman.

Rothschild resigned from the board of Bumi on Monday, saying he had lost confidence in the management's ability to stand up for investors.

In his resignation letter he accused the company's Chairman of being "complicit" in oppressing minority shareholders.

He said a it would be a "disgrace to proceed with, or even entertain" a deal laid out by the powerful Bakrie that could end a fierce boardroom rift and ongoing concerns over corporate governance.

However, Sir Julian Horn-Smith, Bumi's deputy chairman and senior independent director, told the Daily Telegraph that Rothschild was wrong to think the board was trying to do a deal before an investigation into "potential financial irregularities" at Bumi's Indonesian subsidiary, Bumi Resources, was completed.

"Nat's quite wrong about that. No decision has been made. We are looking at it systematically and carefully," he told the newspaper.

"The independent non-executive directors here are absolutely trying to do the right thing."

The Bakrie family has proposed swapping their stake in Bumi for a stake of equivalent value in Bumi Resources, thus ending the relationship between Bumi and themselves.

But rather than act as a peace deal, as some had expected, the offer led to Rothschild's resignation and further mud slinging.

The nature of his departure is subject to considerable speculation, with Rothschild's spokesman saying it was his decision alone.

However, there are also reports that Bumi Chairman, Samin Tan, had threatened to go if Rothschild didn't.

Accusations are now flying over the hacking of emails and telephones.

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Best savings accounts – February 2023
Savings

Best savings accounts – February 2023

Interest rates on cash savings are making a comeback. We look at the best savings accounts on the market now
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
3 Feb 2023
After slumping 42% last year, what's next for Scottish Mortgage?
Investment trusts

After slumping 42% last year, what's next for Scottish Mortgage?

After a spectacular couple of decades, the Scottish Mortgage Investment Trust fell by 42% last year. We take a look at the trust's performance and dis…
3 Feb 2023