The Rothschild Files
Published by MAC on 2003-08-03
The Rothschild Files
[Except where otherwise noted, information on this page is taken from Rothschild's own sources]
The Holding Company
Rothschild Continuation Holdings (RCH) was set up in 1941 to ensure continuity of the[Rothschild] family in banking" This is the "grandparent" of all the Rothschild Companies, exercising ultimate control over them, though each functions "semi-autonomously"
Investment Banking: mergers and acquisitions
NM Rothschild (London)
Calls itself "one of the world's leading advisers and arrangers of finance for the mining industry…active throughout Europe, North and South America, Australia and Asia Pacific"
Last year for example it arranged the acquisition by the Aditya Birla Group (India) of the Nifty Copper mine in Australia from Straits Resources Ltd. This was only the second major acquisition by an Indian company of a large overseas mine
NM Rothschild (Denver) Ltd
Established in 1990, to "serve the interests of the mining industry in the Western United States". In 2000, for instance, it arranged the disposal of the Pittston Coal Company 's coal mining assets to Alpha Natural Resources
Rothschild et Cie Banque (Paris)
La Compagnie Financier Edmond de Rothschild
NM Rothschild Australia Holdings Pty Ltd
NM Rothschild Australia acts as financial advisor to a range of companies and to the Australian government, including:
* Bendigo Mining on its alliance with Harmony Gold Mining (South Africa)
* Malalysian Smelting Corporation on the acquisition of an Indonesian tin producer
* The Namakwa Diamond Company on its response to a hostile takeover bid
:
* $US 900 million financing of the RAMU NICKEL PROJECT in Papua New Guinea (2001)
· Strategic advice given in 2001 on the sale of BOLIDEN's Lomas Bayas copper project and the same company's debt restructuring and new ( US$243 million ) equity raising (following its disastrous tailings dam collapse at Los Frailes in Spain in 1998).
· Making a Aus$4o million takeover offer for Gilt-Edged Mining NL in 2000
· Handling the divestment of Rio Tinto's Norzink refinery in Norway to Outokumpu Oy in 2000
· Handling the divestment of AMP (Australian Mutual Provident)'s joint venture stake in the Tomago aluminium smelter for US$220 million in 2000
and the acquisition by Pechiney of a 15.5% stake in the same plant
· Handling Nuigini's merger with Lihir Management Co in 2000
· Advising De Beers on its (failed) offer for Ashton Mining in 2000 (Rio Tinto succeeded, without the Rothschild's advice)
· Securing for an unnamed buyer a 40% interest in the Richards Bay heavy minerals project (Rio Tinto) for Aus$200 million during 2000
Partnerships
In Australia Rothschild's key joint venture is with the Dutch bank ABN Amro, as ABN Amro Rothschild) .
Kagiso Financial Services was set up as a joint venture with South African partners in 1998 to "provide corporate and project finance"
Managed Funds
Rothschild Private Management Ltd (London)
Rothschild Asset Mgt (Guernsey) - which in turn manages various Five Arrows funds
(see also: Venture Capital below)
La Compagnie Financier Edmond de Rothschild Banque
LCF Rothschild Group (Luxembourg)
Venture Capital:
("I shot an arrow in the air. It came to earth - and I know where!)
Arrow Capital Pty Ltd is the holding company for venture capital activities for the Rothshild group in Australia - managing more than Aus$300 million in funds. It also has shares in both listed and unlisted Australian "natural resource" companies
Golden Arrow Fund
Also managed by NM Rothschild Australia, Golden Arrow has Aus$104 million in capital to invest in the "early high growth phase of companies predominantly in the Australian gold and resource sector"
Edmond de Rothschild Venture Capital Management Ltd - part of the LCF: Rothschild Group based in Luxembourg: it specialises in hi-tech and medical devices
Portfolio investment
Rothschild World Leaders ("look[ing] for companies that are dominant in their field that have a superior market share position and exceptional potential for profit growth")
Unit Trusts
(also known as Mutual funds in the US)
In Asia-Pacific:
Rothschild Asian Enterprise Trust
Rothschild Special Situations Trust
Rothshild Asian Bond Trust
In Europe
Rothschild Savings & Growth Trust
In Israel
EdR Mutual Funds Management was recently set up by LCF Rothschild which claims it was "the first substantial international Investment Bank to offer {Israeli) Mutual Funds in Israel" - and abroad
Equity investment
In Asia:
Rothschild Asia (part of the LCF Rothschild Group) purchases individual "mature" companies specifically (75%) in Japan
See also Up against the Red Shield (3 Aug 03)