Knight Vinke latest to oppose Glenstrata deal

The Glencore and Xstrata merger has come under increasing pressure as activist investor Knight Vinke has become the latest critic of the deal, calling for Glencore to up its offer.

Knight Vinke, an asset manager with a 0.7% share of Xstrata, said the current terms of the £38bn deal fail to represent "fair value" for Xstrata, according to the Telegraph. Glencore is offering Xstrata shareholders 2.8 of its own shares for every Xstrata share they hold. But Knight Vinke said it backed recent demands from Xstrata's largest shareholder Qatar, to raise the offer to a "more appropriate" 3.25. "We intend to vote against the current proposals," Knight Vinke said in a statement on Tuesday. "We have informed the board of Xstrata that we view the proposed transaction as an a...