Bumi Resources and its dominant shareholder, Bakrie Brothers, countered attacks by mining analysts regarding the coal minerÆs buying spree last week. Nalin Rathod, president-director of Bakrie, protested that analysts with ôno commitment, just criticising on the sidelines, had failed to understand the deals properlyö, while the media eschewed deep analysis for the easy attractions of ôbreaking newsö.
Last week, over four days, Bumi Resources made three purchases of Indonesian coal miners, which analysts quickly complained were too expensive and also too closely connected to BumiÆs principal shareholder. It paid a total of about $564 million for majority stakes in Pendopo Energi Batubar, Fajar Bumi Sakti FBS and Darma Henwa.
The price paid for Danwa Henwa,...
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