Bumi smells efforts of ?hostile take over? of KPC

Owners of PT Bumi Resources have indicated that there are signs of hostile take over of its subsidiaries Kaltim Prima Coal (KPC) and PT Arutmin Indonesia by several foreign companies, Bisnis Indonesia reported Tuesday.

One of the executives of Bakrie Group, who owns a controlling stake in Bumi Resources, said that the indications are strong following the emerging negative rumors intended for pulling down Bumi?s share prices.

?They always say KPC performance has declined and etcetera and as a result, the share price will fall and they will buy them at a cheap price," said the executive, who declined to be identified, said.

But, the executive said, the company?s data shows the other way around. Bumi will disclose this data during a meeting with analysts on Wednesday.

?We will show the actual performance of KPC. Because their ways (to take over) are not good and so, as owners of the company, we have to defend it," the executive said.

But he declined to name foreign companies that are involved in the hostile take over efforts.

Bumi has recently failed to sell its coal mining companies to PT Borneo Lumbung Energi.

Meanwhile, it is learnt that Peter Sondakh?s Rajawali Group Corporation and hedge fund Farallon Capital Management L.L.C are eager to acquire all shares of Bumi Resources?s mining companies.(*)