Corporate battles: Rothschild mulls counter-bid in Bumi

JAKARTA: British financier Nathaniel Rothschild is mulling a bid for Bumi PLC coal assets to counter an offer by Indonesia’s powerful Bakrie family, and had approached one of their rivals, a report said Saturday. The formation of Bumi by the Bakries and Rothschild brought Indonesian coal assets to the London Stock Exchange, but the tie-up was beset by boardroom squabbles. Bumi’s board was currently considering a $1.2-billion proposal by the Bakries that would see the family sever ties with the London-listed mining group, an offer that prompted the resignation of Rothschild from the board last month. In a new twist to a feud being carefully watched by foreign investors, Rothschild approached one of the Bakries’ most high-profile rivals, Prabowo Subianto, to join him in a bid, The Wall Street Journal reported. Last month’s proposal by the Bakries will see the family give up their 23.8% stake in Bumi and pay about $1.2 billion for its mines.

Published in The Express Tribune, November 4^th, 2012.