Feeling the heat

8 January 2013 By Kevin Allison

The British financier wants to sack most of the board of Bumi, the stricken coal miner, and its new CEO. His slate of replacements is impressive but his shake-up plan looks half-baked. The first priority should be completing a proposed split with Indonesia’s Bakrie family.

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Nat Rothschild, the financier, called on Jan. 7 for the replacement of 12 out of 14 directors at Bumi, the stricken coal miner in which he speaks for a 12 percent stake. Rothschild included the group’s Chief Executive Nick von Schirnding in the list.
The announcement came as von Schirnding, who took over as CEO on Dec. 31, unveiled cuts to planned capital spending at the group.
Bumi’s shares were hit last year by falling thermal coal prices and allegations of financial irregularities at its Indonesian operations.
Rothschild and Indonesia’s Bakrie family, two of the group’s key shareholders, have lodged competing proposals to resolve a festering governance dispute.

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