Rothschild lines up Bumi counterbid The financier Nat Rothschild is in talks with a group of investors to assemble a counterproposal to the $1.4bn offer made last month by Indonesia's influential Bakrie family to buy out Bumi, the FTSE 250 coal miner. A person familiar with the matter said Mr Rothschild, who owns more than 10 per cent of Bumi, was trying to form a group, including Indonesian businessmen, that would buy the Bakries and their allies out of the London-listed company. The counterproposal would leave a rump company with exposure to Indonesian coal that would retain its London listing and exhibit UK standards of corporate governance "which it currently doesn't have," the person said. Shares in Bumi leapt 8 per cent in morning trading on reports of the rival offer. Two people familiar with the situation said that Mr Rothschild or his representatives had discussed his plans with Hashim Djojohadikusumo, a prominent Indonesian tycoon with experience of mining and overseas investment, and his brother, Prabowo Subianto, a former special forces general who has emerged as one of the most popular early contenders for Indonesia's presidential election in 2014. "Nat Rothschild has approached several businesspeople and companies in Indonesia, and not just Prabowo Subianto," said a spokeswoman for the family. No decision has been made with regards to the meeting between Mr Rothschild and Mr Prabowo. "The Bumi soap opera continues," said one Jakarta-based investor. If Mr Rothschild had corporate governance concerns about the Bakries, he may struggle to find other Indonesian tycoons with an unblemished record. Richard Knights, analyst at Liberum Capital, said: "It's got to be good news for the shares. Nat will have to come up with a better offer than the Bakries. Bumi was created when the Bakries" coal-mining assets were reversed into Vallar, Mr Rothschild's London-listed shell company. Mr Rothschild, former co-chairman of Bumi, fell out with the Bakries last year when he complained of mismanagement at its Indonesian subsidiary PT Bumi Resources. The scion of the Rothschild banking family resigned from the board on October 15 accusing its chairman Samin Tan of being "complicit" in oppressing minority shareholders. Mr Tan has declined to comment on the issue. Last month, the London-listed company said it had received a three-part proposal from the Bakrie Group to buy Bumi plc's operating assets - a 29 per cent stake in PT Bumi Resources and an 85 per cent stake in Berau Coal Energy - in exchange for cash and the cancellation of Bakrie Group's 23.8 per cent stake in Bumi plc. The deal - if completed - would sever the London-listed group's ties with Indonesia and the Bakries, returning Bumi to a cash shell. At about $1.4bn, or $1.2bn in cash, the value of the proposal was almost double Bumi's market value on the day it was announced. Mr Rothschild is now trying to put together a counter-offer which would essentially buy out the Bakries, Mr Tan, who bought half the Bakries" stake in Bumi late last year, and Rosan Roeslani, a Bumi director. A person close to Bumi plc said it had not received any bid approach from Mr Rothschild. The person reiterated that the company would not be making any strategic decisions until the internal investigation into "alleged financial irregularities" at PT Bumi Resources is completed. That could be towards the end of the month. The creation of Bumi was seen as a way for investors to gain exposure to a resource-rich emerging market while enjoying the high standards of corporate governance that come with a London listing. But it has been plagued by controversy and concerns about the Bakries" debts. The company is now perceived to epitomise the risks shareholders face when investing in resource groups in developing countries, even those that come with the City's stamp of approval. Its share price has fallen more than 80 per cent since its peak of £14 last year.