US hedge fund Knight Vinke Asset Management LLC, a shareholder of Xstrata Plc (LON:XTA), said on Friday it would vote against the takeover of the British miner by Swiss commodities trader Glencore International Plc (LON:GLEN) unless the terms of the deal are “materially” improved.
The statement comes after the one by Xstrata’s second-largest shareholder Qatar Holding with over 12% which said yesterday that it would not accept Glencore’s offer of 2.8 new shares for each Xstrata share held.
Qatar has asked earlier for 3.25 Glencore shares for each Xstrata stock, saying that such a ratio would provide more appropriate benefits to shareholders.
The Swiss group, already controlling 34% in Xstrata, agreed in February to buy the rest of the British miner shares and take it private for USD31bn (EUR24.7bn). Both firms’ shareholders are due to vote on the transaction on 7 September.
Knight Vinke said that unless Glencore is ready to pay for the control of Xstrata, it would back the miner’s independence and will consult with other shareholders about a shake-up of the board with the view of making Xstrata a “more robust and independent” business.
Knight Vinke owns 0.5% of Xstrata according to Reuters data.
The planned merger is expected to create the world’s fourth biggest diversified natural resource company and a top producer and marketer of 18 commodities, benefiting from larger scale and diversity in the global resources industry, Glencore and Xstrata said at announcing their USD90bn tie-up in February.
