SLI, fourth largest shareholder in miner Xstrata, said it would vote against the recommended merger with commodities trader and 34% shareholder Glencore, and won backing from another significant shareholder, Schroders.
David Cumming, head of equities at SLI which holds 2% of Xstrata and 0.3% of Glencore, said: "Although we see some merit in the merger of Xstrata and Glencore the proposed exchange ratio clearly undervalues Xstrata's assets and future earnings contribution. Consequently it is our intention to vote against the deal unless the merger terms for Xstrata shareholders are materially improved."
