The five-times great grandson of Nathan Rothschild, who helped finance the British victory over Napoleon at Waterloo, is part of a crumbling deal that doesn’t reflect his family’s good name.
Nathaniel Rothschild’s latest project, a $3 billion deal to create an Indonesian coal deal, lies in tatters, according to Dealbook’s Mark Scott.
In 2010, Rothschild, the former co-chairman of the hedge fund Atticus Capital, teamed up with the Bakrie family, an Indonesian dynasty, and formed the London-listed mining giant Bumi. His bet on a coal boom in Asia misfired and the company’s share price has dropped more than 80 per cent over the last 18 months, reporting a net loss of more than $400 million in the last two years.
Infighting ensued and the 41-year-old Rothschild stepped down from the board “amid allegations of financial misconduct at some of the company’s Indonesian subsidiaries.” He accused Bumi’s chairman, Samin Tan, of not protecting rights of minority shareholders.
In light of an offer the Bakries made for his shares, Rothschild told Dealbook:
“It would be a disgrace to proceed with, or even to entertain, the proposal made by the Bakries.”
The dispute comes at a time when majority owners in resource rich countries are trying to get their companies listed in London while restricting the amount of control they cede to shareholders.