Glenstrata opposition grows as third investor questions deal

Opposition to the all-share merger of Glencore and Xstrata has grown, as a third investor has spoken out about the blockbuster deal.

The amalgamation agreed earlier this week should create a mining and commodities powerhouse, but the deal struck on Tuesday has already been criticised by Standard Life Investments' David Cumming and Schroders' Richard Buxton, who between them own more than 14% of Xstrata.

Royal London Asset Management has also decided to speak out about the $80 billion agreement.  Even though commodity trader Glencore has offered to pay a 15.2% premium for mining firm Xstrata, RLAM, which has a stake in the miner worth around £140 million, said shareholders have still to be 'sold' on the deal.

'We are feeling disappointed that they [Xstrata management] haven't sold it to us,' RLAM's Jane Coffey said.

Speaking to the Telegraph, equities head Coffey said more proactive steps should be taken to rally shareholder support and outline why they should invest in the merger.