Standard Life Investments Tuesday said it will vote against plans for a merger of Anglo-Swiss miner Xstrata PLC (XTA.LN) and commodities titan Glencore International PLC (GLEN.LN) unless terms of the deal are improved.

"Although we see some merit in the merger of Xstrata and Glencore the proposed exchange ratio clearly undervalues Xstrata's assets and future earnings contribution. Consequently it is our intention to vote against the deal unless the merger terms for Xstrata shareholders are materially improved," said Standard Life head of equities David Cumming.

Xstrata Tuesday formally announced plans to merge with commodities titan Glencore to create a $90 billion, sector-straddling giant.

-By Rhiannon Hoyle, Dow Jones Newswires; +44 (0)20 7842 9405; rhiannon.hoyle@dowjones.com

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