Wednesday, May 27, 2015

Rothschild heir fails in his bitter boardroom coup at coal mining firm Bumi

Rothschild heir fails in his bitter boardroom coup at coal mining firm Bumi

  • Nat Rothschild failed in his bid to oust company management
  • He took his mother Lady Rothschild along for support
By Rob Davies for the Daily Mail
Published: 18:05 EST, 21 February 2013 | Updated: 18:55 EST, 21 February 2013

Defeat: Nat Rothschild lost his battle to regain control of coal mining firm Bumi
Defeat: Nat Rothschild lost his battle to regain control of coal mining firm Bumi
Billionaire financier Nat Rothschild has lost his battle to regain control of beleaguered coal mining firm Bumi.
In a high-stakes meeting, the scion of the banking dynasty failed to get shareholders to support his plan to oust the company’s management and install himself as a director.
He was defeated in the showdown despite bringing along a high-profile supporter in the form of his mother, Lady Rothschild.
The humbling result marks the end of the latest chapter in an acrimonious saga that pitted him against a branch of his own family.
Bumi’s board was advised by NM Rothschild, the family bank from which Nat’s father Lord Rothschild split three decades ago.
But the family connection was of little help to Mr Rothschild, who City sources said had ‘tarnished’ his reputation in the financial investment community.
He convinced investors to plough £707million into his venture, which bought Indonesian mines to sell coal to rapidly-industrialising Far East countries.
The value of the FTSE-listed company has plunged by £1.4billion since July 2011, leaving those investors fuming.
David Buik, of traders Cantor Index, said: ‘His ability to attract money into other emerging ideas is going to prove very difficult.’
But Mr Rothschild insisted he would not be deterred from launching more multi-million pound investment schemes, saying: ‘You must not regret the past nor wish to shut the door on it.’
Hopeful: Mr Rothschild is seen arriving at a Bumi shareholder meeting in London
Hopeful: Mr Rothschild is seen arriving at a Bumi shareholder meeting in London
The Bumi soap opera saw Mr Rothschild locked in a fierce war with the company’s board and powerful Indonesian political dynasty the Bakrie family, with whom he founded the company.
During the shareholder meeting, held at the Honourable Artillery Company in London, burly security guards patrolled the entrances and exits, wearing black trench coats and whispering into walkie-talkies.
But barring an accusation from Mr Rothschild that Bumi boss Nick von Schirnding ‘couldn’t operate a tobacco kiosk, let alone  a coal mine’, the event was generally peaceful.
Mr Rothschild made 22 proposals but was outvoted on all but three. The proposal that secured the least support of all was his suggestion that he join the company’s board.
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