Bakrie to decide whether to sell Indocopper stake<\/p>\n
JAKARTA (JP): The shareholders of Bakrie & Brothers are
\nexpected to decide today whether the company will sell its stake
\nin Indocopper Investama Corporation (IIC), which owns 9.36
\npercent of Freeport Indonesia.<\/p>\n
Bakrie & Brothers' president Tanri Abeng said yesterday that
\nthe shareholders' annual meeting today would decide whether there
\nwas to be a sale.<\/p>\n
He refused to name potential buyers but said they would have
\nto meet Bakrie's requirements. He did not elaborate.<\/p>\n
Asked if Muhamad (Bob) Hasan had formally bade for Bakrie's
\nstake in Indocopper, he said: \"I think it is unethical for me to
\nmention names of potential buyers,\" he said.<\/p>\n
A senior Bakrie executive told the Jakarta Post earlier that
\nfinancial advisors, Salomon Brothers and Forest International,
\nhad advised the company to sell its Indocopper shares because
\nIndocopper was not part of its core business, which comprises
\ntelecommunications, infrastructure, plantations and strategic
\ninvestment.<\/p>\n
Tanri said the financial advisors had suggested that Bakrie
\ninjected the cash from the sale into its core business.<\/p>\n
\"We have to comprehensively and thoroughly study the advice,\"
\nhe said.<\/p>\n
He said that if Bakrie sold its stake in Indocopper it would
\ndo so at market prices.<\/p>\n
But he said his company would not make an open tender even
\nthough more than two firms had expressed interest in the
\nIndocopper stake.<\/p>\n
Chairman of the Bakrie Group Aburizal bakrie noted earlier
\nthat the Indonesian government and Indocopper each now held 9.36
\npercent of Freeport Indonesia. The rest was held by PT Freeport-
\nMcMoran Copper and Gold of the United States.<\/p>\n
In December 1992, Freeport-McMoran bought 49 percent of the
\nshares of IIC so that 49 percent of IIC was owned by Bakrie and
\nBrothers, 2 percent by Bakrie Investindo and 49 percent by
\nMcMoran.<\/p>\n
Local dailies reported late last week that the country's
\ntimber baron Bob Hasan was likely to acquire Bakrie & Brothers'
\nstake in Indocopper through Nusamba group.<\/p>\n
Nusamba group is controlled by three foundations chaired by
\nPresident Soeharto. Bob Hasan and the President's eldest son
\nSigit Hardjojudanto each own 10 percent of the widely diversified
\nbusiness group.<\/p>\n
Earlier reports said that Bob Hasan had bought 50 percent of
\nPT Askatindo Mineral Karya, Bre-X's local partner in the Busang
\ngold mine. (09)<\/p>",
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"sponsor": "Okusi Associates",
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