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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...