Rothschild vulnerable to Bumi coup
NAT Rothschild is highly vulnerable to a coup attempt by rival investors in his Indonesian coal mining venture Bumi, as they square up for a pitched battle over control of the company.
Bumi’s Indonesian investors, the Bakrie Group and tycoon Samin Tan, have stepped up their bid to kick Rothschild and his supporters off the board and replace them with allies.
The firm’s Indonesian owners control 43 per cent of voting shares versus Rothschild’s 12 per cent, leaving the balance of power with the seven per cent owned by a mix of City and sovereign wealth funds.
Rothschild currently thinks he has the support of all the non-Indonesian investors, but his case has been weakened by a row last autumn, in which he leaked a letter chastising the board to the media before even sending it.
One source close to the situation said: “Most of the board has been pretty unimpressed with Nat. It could be terminal. He’s fallen out with everyone.” The source added that independent director Lord Renwick is still “furious” about the letter.
Samin Tan will fly into London next week on a major charm offensive to put his case to BlackRock, Abu Dhabi Investment Council, Fidelity, Generali and Schroders, among others.