bumi

"If you think about the issues related with Bumi, it is risky, " said an investment banker familiar with the company.

The regulator took no action against the company, and Bumi later reduced the size of its stake to comply with the regulator's ruling.

A new company bundling together the assets of two Indonesian groups and the shares of Vallar will be listed in London as Bumi Plc.

Referring to terms of the CIC deal, UBS said "Bumi's cost of debt was about twice as high as the sector average of 7-10 percent. "

The British firm will hold a 25% stake in Bumi Resources, Indonesia's largest coal producer, and 75% of Berau Coal, the fifth-largest.

In a report, Deutsche Bank also cited the lack of clarity pertaining to Bumi's loans.

The tie-up between Bumi and China Investment Corp, the sovereign fund, was seen as a further sign of China's interest in the sector.

Three-year-old twin boys dressed in B-striped outfits run around the car park of Bumi Sehat Birthing Clinic.

Vallar will change its name to Bumi plc. Its chief executive and chief financial officer will be Bakrie appointees.

Bumi's outstanding debt is $3. 8 billion, says Dileep Srivastava, a company official.

The deal, which is expected to close in April, will see the Rothschild family own 34 per cent of the new Bumi group.

Bumi said it expected to sell 13m tonnes of coal to China this year.

The debt-like instrument will have a six-year term, Bumi said.

Bumi hopes to double its output by 2012 to 100m tonnes.

And last year Tata Power, another Indian energy firm, paid $1. 1 billion for stakes in two Indonesian coal mines owned by Bumi Resources.