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

Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022
Britain’s most-bought shares w/e 5 August
Stocks and shares

Britain’s most-bought shares w/e 5 August

A look at Britain’s most-bought shares as of 5 August, providing an insight into how investors are thinking and where opportunities may lie.
9 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Brace yourself for the return of rationing
Economy

Brace yourself for the return of rationing

Russia is turning off the cheap energy. That is already leading to belt-tightening, says Matthew Lynn. Who will suffer most, and which sectors will th…
5 Aug 2022
Fear of missing out – what should investors do now?
Investment strategy

Fear of missing out – what should investors do now?

Markets have rallied from their mid-June lows. But if you missed out, as most investors did, what should you do now? Max King explains.
8 Aug 2022