Thursday, February 01, 2007

Will Bumi cut the deal?

I asked several analysts in town regarding the possibility of PT Bumi Resources Tbk could ink a deal to sell up to 30% shares of PT KPC and PT Arutmin Indonesia.

"I'm skeptical any deal can be closed on Bumi, now or ever," one analyst at local brokerage firm said.
Few weeks ago, I asked the owner of Bumi. "We're quite optimistic that before February 9, we could seal the deal," the famous businessman told me convincingly. Tata (India), BHP (Australia), Mitsubishi were mentioned as potential buyers. Tata had just accomplished major acquisition (Chorus for USD12 billion), while BHP was the controlling shareholder of Arutmin before Bakrie family acquired the company with loans from Bank Mandiri.
But, "I don't believe they could make it. They announced too many actions but delivers none," another senior analyst said.
"They could still cut the deal if the terms are favorable, especially the marketing side & cashflow management. But I don't think that's gonna happen next week," an investment banker familiar with such deals.

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