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Bakries start Bumi pull-out after victory over Rothschild

Published on Feb 22, 2013 5:52 PM
 
The Bakrie Tower that houses the head office of Bumi Resources in Jakarta on Feb 21, 2013. The powerful Indonesian Bakrie family said on Friday, Feb 22, 2013, it would start the process of divorcing from London-listed miner Bumi Plc after winning a crucial shareholder vote over bitter rival Nathaniel Rothschild. -- PHOTO: AFP

JAKARTA (AFP) - The powerful Indonesian Bakrie family said Friday it would start the process of divorcing from London-listed miner Bumi Plc after winning a crucial shareholder vote over bitter rival Nathaniel Rothschild.

Shareholders shot down a proposal by Rothschild to regain control of the firm in an extraordinary meeting Thursday in London, allowing the Bakries to follow through with their plan to exit the firm and keep their lucrative coal assets.

The Bakries and British financier Rothschild have been embroiled in a bitter fight for control of Bumi since soon after they set up the company in 2011.

The row has highlighted on the pitfalls of doing business in the Asian nation, which has long battled corruption and where questions over corporate governance have often been raised by foreign firms.

 
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