Return ‘flawed’ shares bonus, Bumi tells Nat Rothschild
Monday 04 February 2013
Nat Rothschild was today called on to surrender his shares in Indonesian miner Bumi as the financier stepped up his battle to oust the Bakrie family and their supporters from the group’s board.
Rothschild brought Bumi to the market in 2010 when the Indonesian Bakrie brothers reversed coal-mining assets into cash shell Vallar. But the two factions have been riven by clashes over corporate governance, and Rothschild was deposed as co-chairman last year.
The group raised more than £700 million when it floated in July 2010 but the shares have since sunk 70% on a mix of board rows, falling coal prices and allegations of financial irregularity. Rothschild, who has a 12% stake, wants 12 of the current 14 directors ousted, and has called an extraordinary general meeting for February 21.
But Bumi’s senior independent director Sir Julian Horn-Smith, one of Rothschild’s targets, called on the financier to return the bonus shares he was granted in Bumi Plc after creating the company. Sir Julian said: “It is now clear that the deal and deal structure which Nat proposed and championed for Vallar has resulted in considerable losses for many shareholders. After meetings with shareholders, there is growing pressure from them for Nat to return these shares.
“The board believes it is unjust that Nat should be able to continue to own and vote these shares, which he received as the result of a flawed transaction. It is wrong for failure to be rewarded and this bonus should be clawed back.”
The Bakries plan to unwind their interests in Bumi under a “separation proposal” that involves buying back the holding company’s 29% stake in miner Bumi Resources. But the family warned last week that they would not go ahead if Rothschild’s proposals were accepted, potentially triggering a legal dispute that could take years to resolve.
Rothschild today said the board’s proposals would not achieve the exit of the Bakries and their supporters, and pledged to “implement best-practice corporate governance throughout the organisation”.
Harry Potter actor suffered 'severe flu-like symptoms' on a flight from London to Orlando
Rap music mogul accused of running two men over in his truck
World cities ranked in terms of safety, food security and 'liveability'
First full-length look is finally here
"Oink! Oink! Hee hee hee!" First interview with the big-screen star
Biohacking group hopes technology will lead people to think about even more dystopian uses
The party's potential nominations read like a high school race for student body president
- 2 The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Baldness could soon be treated using stem cells, scientists hope
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Mia Khalifa: Pornhub star claims Drake sent her 'cringeworthy' naked photos on Instagram
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...