Bumi and Rothschild's plan under attack from investor body
A leading investor body has launched a withering attack on the beleaguered natural resources company Bumi, but dealt a blow yesterday to founder Nat Rothschild's attempt to oust its board.
Pirc, which advises some of Britain's biggest pension funds on voting decisions, said the fact that the scandal-hit business was allowed to list in London was an "indictment" of the listing rules.
It backs candidates put up by Mr Rothschild who satisfy its criteria for being appointed as independent non-executive directors, as well as the replacement of Nick von Schirnding as chief executive by Mr Rothschild's candidate, Brock Gill, because of the latter's greater "mining experience".
However, it has urged shareholders to oppose Mr Rothschild's election, and to abstain on his candidate to become chairman, Wallance King, because of their "prior business relationship".
Pirc has also advised shareholders not to vote against existing independent directors, but to back the removal of directors with links to Indonesia's Bakrie family, some of whose mining assets were reversed into Bumi when the business was created by Mr Rothschild. The relationship rapidly soured and the share price tumbled amid a series of claims and counter-claims between the two sides.
This led Mr Rothschild to call an extraordinary general meeting with the aim of electing his own slate. Already one voting adviser, ISS, has opted to oppose his candidates, voicing concerns that their election could hamper a resolution of the situation.
The Bakries would like to buy their mining assets back, but at a price representing a big loss to Bumi.
Pirc said in its report: "Arguably, this is one of the biggest float fiascos seen on the London Stock Exchange in recent years and in Pirc's view should have never been listed in the first place."
A spokesman for Bumi hit out at the report, claiming it contained "inaccuracies".
"It should not be relied upon by shareholders," he said.
auctionThe first 23 lots have now gone. But there are 22 more still up for grabs
healthJames Bond's alcohol consumption puts him at 'high risk' of cirrhosis, tremors... and impotence
comedy'Fresh Meat' star sees off stiff competition from Alan Carr, David Mitchell, Graham Norton, Lee Mack and Sarah Millican to win top prize
musicPolice chief rejects rappers' claims that his work is as dangerous as law enforcement or military service
tvSpoiler alert: Find out the result of a heated final show
Beatles rush out 'bootleg' album to defy EU copyright law
Harvey Weinstein reveals his secret weapon on-set
Now that an oil trader's drinking has got him sacked, will we all have to make do with an afternoon latte?
Chiwetel Ejiofor and Idris Elba get nods for Best Actor, which no black Brit has ever won
Geoffrey Macnab reviews The Desolation of Smaug - the meat in Peter Jackson's Hobbit sandwich
peopleWhat advice would David Cameron give to his younger self?
- 1 Nelson Mandela memorial: ‘Bogus’ sign language interpreter made mockery of Barack Obama’s tribute in Soweto
- 2 Mystery of Epping Forest 'big cat' is solved
- 3 French café starts charging extra to rude customers
- 4 Australia incest case: Severely deformed children found in remote farming community after generations of inbreeding
- 5 Physicists discover 'clearest evidence yet' that the Universe is a hologram
- < Previous
- Next >
iJobs Money & Business
£30000 - £45000 per annum + Bonus + Benefits: Harrington Starr: Regulatory Man...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Pre-Sales / Cl...
£40000 - £60000 per annum + Bonus + Benefits: Harrington Starr: Regulatory Man...
£40000 per annum: Harrington Starr: Senior Network Engineer (CCNP, CCIE, Netwo...