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Setback for Rothschild in battle for control of Bumi Setback for Rothschild in battle for control of Bumi
(7 months later)
Nat Rothschild's hopes of winning back control of the mining group Bumi have received a further setback after shareholder Standard Life Investments said it would vote against his proposals to overhaul the board at the troubled company.Nat Rothschild's hopes of winning back control of the mining group Bumi have received a further setback after shareholder Standard Life Investments said it would vote against his proposals to overhaul the board at the troubled company.
The development in the ongoing battle for control between Rothschild and the Bakrie family, the financier's one-time partners in the venture, is the latest blow for his plan to install a new board at an extraordinary general meeting on Thursday.The development in the ongoing battle for control between Rothschild and the Bakrie family, the financier's one-time partners in the venture, is the latest blow for his plan to install a new board at an extraordinary general meeting on Thursday.
Standard Life Investments, which holds a 2.2% stake in Bumi, committed to back the existing board at the vote, saying it was best for the long-term benefit of the shareholders.Standard Life Investments, which holds a 2.2% stake in Bumi, committed to back the existing board at the vote, saying it was best for the long-term benefit of the shareholders.
The latest stumbling block for Rothschild's ambitions comes after a key Indonesian investor, Rosan Roeslani, sold his 10% shareholding in Bumi and made it available to be voted against the British financier. Previously, that shareholding had been subject to voting restrictions because Roeslani was deemed to be acting with the Bakries.The latest stumbling block for Rothschild's ambitions comes after a key Indonesian investor, Rosan Roeslani, sold his 10% shareholding in Bumi and made it available to be voted against the British financier. Previously, that shareholding had been subject to voting restrictions because Roeslani was deemed to be acting with the Bakries.
The new owners of the shares – two funds and a company controlled by a high-profile Indonesian family – may vote as they wish after a decision by the Takeover Panel that they are not acting with the Bakries.The new owners of the shares – two funds and a company controlled by a high-profile Indonesian family – may vote as they wish after a decision by the Takeover Panel that they are not acting with the Bakries.
"After careful consideration of the resolutions, we believe the restructured Bumi plc board has the best prospects of exiting the Bakrie relationship and maximising long term value for the remaining shareholders. Consequently we shall support the Bumi board and vote against all the resolutions being considered at the 21 February meeting," said David Cummings, head of equities at Standard Life Investments."After careful consideration of the resolutions, we believe the restructured Bumi plc board has the best prospects of exiting the Bakrie relationship and maximising long term value for the remaining shareholders. Consequently we shall support the Bumi board and vote against all the resolutions being considered at the 21 February meeting," said David Cummings, head of equities at Standard Life Investments.
Rothschild said it was Cummings' initial support for an emergency general meeting that had moved him to pursue the plan.Rothschild said it was Cummings' initial support for an emergency general meeting that had moved him to pursue the plan.
"Whatever the outcome on Thursday, and it will depend on the Takeover Panel's decision to admit new shareholders at the 11th hour, Standard Life and I agree on many things. Most importantly, as evidenced in Standard Life's statement, we both agree that this board and the existing management needs to be restructured," he said."Whatever the outcome on Thursday, and it will depend on the Takeover Panel's decision to admit new shareholders at the 11th hour, Standard Life and I agree on many things. Most importantly, as evidenced in Standard Life's statement, we both agree that this board and the existing management needs to be restructured," he said.
Rothschild and St James' Asset Management hold just over 25pc of the voting shares. Other declared supporters include Schroders, Brompton Asset Management and Sofaer Capital Management.Rothschild and St James' Asset Management hold just over 25pc of the voting shares. Other declared supporters include Schroders, Brompton Asset Management and Sofaer Capital Management.
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