Rothschild under pressure to hand back Bumi shares
Monday 04 February 2013
The City veteran Sir Julian Horn-Smith has called on the financier Nat Rothschild to surrender his shares in the London-listed miner Bumi, condemning them as a "reward for failure".
Mr Rothschild, pictured, is battling to oust the Indonesian Bakrie family and their supporters from the board of the company, which the financier brought to the market in 2010 when Indonesian coal mining assets were reversed into his cash shell Vallar.
Mr Rothschild received 16.1 million shares in return for completing the deal but relations collapsed in spectacular fashion amid clashes over corporate governance, and he was deposed as co-chairman last year.
He hit back, saying: "Contrary to what is asserted by the company, I am not 'in the money' on my Bumi investment. I am, in fact, about £27m underwater."
The shares have fallen 70 per cent since the company floated in 2010 on a mix of board rows, falling coal prices and allegations of financial irregularity, dealing a severe blow to Mr Rothschild's standing in the City. The financier, who has a 12 per cent stake in the company, wants 12 of the current 14 directors ousted and has called an extraordinary general meeting for 21 February.
The Bakries have already called on him to give up his shares. Sir Julian, a veteran of the FTSE 100 giants Vodafone and Lloyds, and one of Mr Rothschild's targets, compared the shares to rewards for failure in the banking industry.
He said: "I really don't know what Nat is going to do next. 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 are planning to unwind their interests in Bumi under a deal that involves buying back the holding company's 29 per cent stake in the Indonesian miner Bumi Resources. But they warned they would not go ahead if Mr Rothschild's proposals were accepted, potentially triggering a dispute that could take years to resolve.
Mr Rothschild said yesterday that 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".
- 1 BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
- 2 Number of young homeless people in Britain is 'more than three times the official figures'
- 3 The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
- 4 The biggest first date turnoff has been revealed
- 5 German man found living with 300 rats in tiny apartment
BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
Number of young homeless people in Britain is 'more than three times the official figures'
Budget 2015: George Osborne to axe subsidies for higher income earners in social housing
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...