Bumi – The heat is on… and it’s on the Board! (to the tune of Beverly Hills cop!)

Horn-Smith

More news stories out overnight surrounding the EGM that ol Natty is requisitioning to replace largely the entire Board (see below). I must say I agree wholeheartedly with his stance, Horn-Smith has proved extremely ineffectual this last few months since the allegations of corporate skullduggery came to light. Another example of the gilded public school appointment nonsense that is like a cancer in the Boardrooms of the UK. Off with their heads is what I say!

See below – 

Coal miner Bumi is facing a battle for control after agreeing to a shareholder vote that will decide the future of the majority of its board members.

Nathaniel Rothschild, co-founder of Bumi, had demanded the vote in an attempt to return to the firm’s board.

He had quit the board last year amid a row with Indonesia’s Bakrie family.

Bumi owns a stake in key Bakrie assets and there have been tensions between the two over potential irregularities at one of the Bakrie firms.

The vote will take place in February, although an exact date is yet to be decided.

Ongoing dispute

The dispute revolves around Bakries’ Indonesian firm PT Bumi Resources, in which Bumi owns a 29% stake.

Mr Rothschild had called for a radical clean-up at the firm in 2011, leading to relations between the two being soured. Last year, Bumi began an inquiry into what it said were “potential financial and other irregularities” at the firm.

As the discord grew, the Bakrie family offered to buy back its assets from Bumi for an estimated $1.4bn (£870m) and split from the firm.

However, Mr Rothschild said the proposal was “not in the interests of minority shareholders” and resigned from the board.

The deteriorating relations between the two key shareholders have stoked fears about the future of the firm and hurt its share price.

Mr Rothschild now wants to oust 12 of the 14 board members and bring in new ones in an effort to turn the firm around.

“The calling of this general meeting will offer shareholders a clear choice between the board and its strategy of separation from the Bakrie Group, approved unanimously by the independent directors, and Nat Rothschild and his associates,” Nick von Schirnding, chief executive of Bumi said.

SBM TAKE – The heat is now well and truly on Tan and the Bakries. They want the Berau asset and to cover their tracks then its simple, bid for Bumi Plc and make sure the figure tempts the minorities – nearer to £5 than £3.