Rothschild, who quit four months ago over alleged financial irregularities, wants to return to mining company’s board
Indonesian mining company Bumi has consented to a demand by its founder Nat Rothschild to hold a shareholder meeting but launched an attack on the former director of the London-listed company.
Rothschild, who quit four months ago over alleged financial irregularities, wants to return to the board.
But Sir Julian Horn-Smith, the senior independent director of Bumi, said in a stock market statement that Rothschild’s “time as a director of Bumi was characterised by taking highly confrontational positions that proved counterproductive to addressing the company’s issues”.
Horn-Smith, a former director of Vodafone, had been on the board of Rothschild’s acquisition vehicle Vallar, which became Bumi after taking a 29% stake in the mining business controlled by the Bakrie family in Indonesia.
Rothshild quit after declaring he had “lost confidence” in the board to protect investors in Bumi from a proposal by the Bakries to take control of mines.
His call for a shareholder meeting to remove 12 of the current 14 directors on the Bumi board won early support from Schroders, which owns more than 4% of the company, and was said to be backing Rothschild in his effort to remove the directors.
Shares in the company were the biggest gainers in the FTSE 250, jumping nearly 20% to 288p, although they remain well below the £10 at which they were floated on the stock market in July 2010.
The shareholder meeting will be held in February and Bumi said it would provide shareholders “with a clear choice” between the current management or the changes proposed by Rothschild.