A leading investor has added its voice to the chorus calling for management behind the planned £54bn merger of miner Xstrata (Dusseldorf: XTR.DU - news) and commodity trader Glencore to revise the terms of the deal.
Fidelity Worldwide Investment, which holds stakes in both companies, said that the plans need to be rethought.
"We are supporters of the deal in principle but we think the terms need to be revisited," a spokesman for Fidelity said. Fidelity is understood to want Glencore to pay a higher premium to merge with Xstrata.
The call comes after two high-profile Xstrata investors, Standard Life (Other OTC: SLFPF.PK - news) Investments and Schroders (Berlin: PYX.BE - news) , both voiced their opposition, saying they would vote against the deal on its current terms.
Fidelity's position is understood to be less vehement. As well as holding 1.5pc of Xstrata, it holds 2.3pc of Glencore.
The current plan is Xstrata investors will receive 2.8 Glencore shares for each Xstrata share they hold, which some say argue undervalues the miner.
The fact that Fidelity, as a holder of shares in both companies, says Glencore should up its offer is likely to add weight to that argument.
Glencore's shareholders have not spoken out in the same way. Management and employees, who hold 87pc of the business, would be unlikely to air any concerns publicly. One source said there is a silent minority within the company who think the deal in fact overvalues Xstrata.
However, this is unlikely to be significant as senior directors representing about 37pc of Glencore shares have already given their irrevocable support to the merger.
Glencore is understood to be in the process of talking to its shareholders.
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