LONDON â€" The British financier Nathaniel Rothschild on Monday resigned from the board of the mining company Bumi that he helped to create.
The move comes as the Bakrie family, an Indonesian dynastic family who partnered with Mr. Rothschild's to build the London-listed mining company, announced last week that they had offered to buy almost all of the coal mining assets owned by Bumi.
In a letter to Samin Tan, the Indonesian mining mogul and chairman of Bumi, Mr. Rothschild said that he regretted bringing the Bakries to London as part of the mining venture.
He added that their proposed acquisition of Bumi's mining assets should not go ahead while questions remained about allegations of financial misconduct at some of the company's subsidiaries.
“It would be a disgrace to proceed with, or even to entertain, the proposal made by the Bakries last Wednesday,†the British financier said. “I believe that this proposal is so obviously not in the inte rests of minority shareholders that I find it impossible to stay on as a director.â€
The announcement follows a long-standing feud between Mr. Rothschild, whose family can date its heritage in the European banking industry back to the 18th century, and his Indonesia partners.
After Mr. Rothschild called for a shake-up in Bumi's management late last year, the Bakries maneuvered to reduce his influence by selling a stake in the company to Mr. Tan, who subsequently became its chairman.
In September, Bumi announced an investigation into irregularities at its subsidiary, PT Bumi Resources.
The allegations relate to financial accounting records for last year in which certain investments were marked down to zero, according to a statement from the London-listed company.
“I am afraid that I have lost confidence in the ability of the board to stand up for investors,†Mr. Rothschild said in his letter on Monday.
Last week, the Bakries responded by offering to acquire Bumi's 29.2 percent stake in PT Bumi Resources.
Under the terms of the proposed deal, companies controlled by the Bakrie family would swap their 23.8 percent stake in Bumi for a 10.3 percent holding in PT Bumi Resources. The Indonesian family would then offer to buy the remaining 18.9 percent stake in the Indonesian coal mining company for cash by the end of the year.
The Bakries also had proposed to buy Bumi's majority control of PT Berau Coal Energy, another Indonesian mining company, within the next six months. The two deals could be worth a combined $1.2 billion.
In his letter, Mr. Rothschild said Mr. Tan could be in line to receive £10.91 ($17.53) a share as part of the proposed deal, while other investors may only offered £4.30 a share for their stakes.
“You appear determined to drive through the Bakries' proposal,†the British financier said in his letter to Bumi's chairman.
A representative for the Bakries could not be immediately reached for comment.
