Monday, December 11, 2006

Tata & Bumi Resources divestment

Media had reported earlier that five prospective investors are competing to acquire up to 30% shares of PT Bumi Resources Tbk. One of them is Tata Group, India. But it's not clear whether they want 30% of Bumi shares or simply divest its subsidiary PT Kaltim Prima Coal, the largest coal producer in Indonesia. Controlling owners of both companies met in India last week! But others doubt that.

"We heard that Tata also sent Adaro Indonesia (the second largest coal producer) an unsolicited letter inquiring about buying a significantly minority stake in Adaro. So, I suspect they're just sniffing around, not really serious about making actual acquisitions," a banker at European-based investment bank said.

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