Valco May Offer $648 Million to Gain Stake in Bumi

Valco Corp. said it may offer as muchas $648 million to buy Odickson Finance SA, an investment company that provided loans backed by shares of PT Bumi Resources, Asia
biggest exporter of coal used by power stations.
Odickson in April provided $1.1 billion of loans to Bumi Jakarta-based parent, PT Bakrie & Brothers. Bakrie pledged stock as collateral for the loans, including 4.1 billion shares in
Bumi, equivalent to a 21.2 percent stake.
Valco aims to trump a bid from Northstar Equity Partners, the Indonesian affiliate of U.S. buyout firm TPG, which agreed this month to take over $575 million of debt from Odickson and
form a venture with Bakrie that would gain control of the Bumi shares.