ISS attacks Xstrata deal

SHAREHOLDER advisory group ISS last night recommended investors vote against the proposed merger of commodities trader Glencore with miner Xstrata, the latest threat to an increasingly troubled deal.

The influential American research organisation said it could not back the deal because it had “marginal” economic merit and because Glencore’s handling of the merger process “has raised several additional red flags”, with particular reference to the cash retention packages for executives.

Xstrata shareholders will vote on the mega-merger on 7 September.