LONDON Nov 5 Miner Bumi Plc has
received details of a proposal from co-founder Nat Rothschild
that would provide an alternative to a $1.4 billion plan
outlined by the Bakrie family to dismantle the coal mining
Bumi - founded to years ago by Rothschild and the
politically connected Bakries two years ago - said on Monday its
independent directors and advisers would consider the proposal.
However they would not make any recommendation until an
independent investigation into alleged financial wrongdoing at
its Indonesian operations was "appropriately advanced".
Bumi's board is receiving advice from investment bank
Rothschild, which is not directly related to Nat
Rothschild. Monday's statement gave no detail of the new,
alternative proposal, restricted by confidentiality agreements.
Reuters reported on Friday that Rothschild was in talks with
new Indonesian investors including a contender for the country's
presidency, former general Prabowo Subianto, on a plan to
counter the Bakrie offer.
Prabowo and brother Hashim Djojohadikusumo are in talks with
Rothschild, a spokeswoman for the two told Reuters on Monday.
She said Rothschild was understood to be holding talks with
other parties in Indonesia, but gave no further details.
Rothschild set up Bumi with the Bakries two years ago, when
the politically connected family injected Indonesian coal assets
into a London investment shell created by the financier.
But their relations have since soured, sparking public
confrontations, most recently over an investigation into
potential financial wrongdoing in Bumi's Indonesian assets, as
coal prices tumbled and the London-listed firm's shares slumped.
Tensions came to a head last month when the Bakries announced
plans to unwind the venture. Rothschild resigned from Bumi's
board, aiming to fight a proposal he said would not be in the
interests of minority shareholders.