SLI and Schroders' Buxton to vote against Glencore-Xstrata deal

Xstrata's fourth largest shareholder, Standard Life Investments, said it will vote against the recommended merger between the miner and Glencore because the deal "clearly undervalues" the miner.

Schroders' head of UK equities Richard Buxton told Reuters he supported SLI's position. Xstrata is the sixth largest holding in Buxton's £2.5bn Schroder UK Alpha Plus fund at 3.4% of the portfolio. The merger of equals between Glencore and Xstrata, confirmed this morning, will create a $90bn resources giant that will combine Glencore's commodity trading strength with Xstrata's position as one of the world's largest miners of thermal coal, copper, nickel and zinc. Standard Life Investments owns 63.6 million shares in Xstrata, equivalent to 2% of the company. It also has a smaller posit...