LONDON Nov 9 Scottish Widows Investment
Partnership, one of the 10 largest investors in Xstrata,
has come out in support of the miner's proposed $33 billion
takeover by Glencore and a revamp in pay plans designed
to retain top talent.
Anne Fraser, head of corporate governance at SWIP which owns
1.1 percent of Xstrata, said on Friday her company backed both
the deal's rationale and the new remuneration package, which has
sparked anger from some investors for its size and scope.
"We are supportive of the merger and the revised incentive
arrangements. The merger will bring together two different
but complementary businesses," she said.
"In this particular case, it is our view that it will be
important to retain the skills required to manage
the combined assets and deliver the promised cost savings."
News of SWIP's voting intentions will boost spirits among
the management of both Glencore and Xstrata as they enter the
home straight of a controversial merger process.
But while support for the tie-up may be growing, some
investors remain staunchly opposed to the idea of rewarding
executives just to stay in their posts.
A second Xstrata investor, also among the 10 largest
shareholders, blasted SWIP's decision to vote in favour of the
"We are voting against the remuneration, and anyone who
isn't voting against the remuneration really ought to shut down
their corporate governance departments and tell people that they
just don't do (corporate governance) anymore," the investor
said, speaking anonymously in line with a policy on pre-vote
Xstrata shareholders are due to vote on the takeover on