Rothschild Accuses Two Hedge Funds Of Being In Cahoots With Rivals

Jan 29 2013 | 11:08am ET

Nathaniel Rothschild is attacking a pair of U.S. hedge funds as he battles for control over mining company Bumi.

Rothschild, who is both a scion of the famed banking family and the co-chairman of hedge fund Atticus Capital, accused the hedge funds, Route One and Orchard Capital Partners, of links to Indonesia's Bakrie family, which controls a majority of Bumi's shares. Rothschild said he has reported the two funds to the U.K. Takeover Panel; if it finds in his favor, it would neutralize the funds' 1.61% voting stake in Bumi—the Panel has already ruled that the 57% of Bumi shares linked to the Bakries are restricted to 29.9% voting rights.

Rothschild controls 18.2% of Bumi and serves as its co-chairman, alongside Indra Bakrie.

"We have reported Route One and Orchard Capital to the Takeover Panel for possible Rule 9/Concert Party breaches," Rothschild's NR Investments said. "Both Orchard Capital and Route One are invested in or affiliated with companies that have exposure to the Bakries' margin loans."

Rothschild is seeking to oust 12 of Bumi's 14 board members.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Publisher's Note