Odey increases its stake in Sirius Minerals

Odey Asset Management has increased its stake in Sirius Minerals as the hedge fund prepares to vote against Anglo American's £405m rescue bid for the potash miner.

The fund, run by Crispin Odey, said it had upped its stake in Sirius to 1.4% from 1.3% with the deadline for proxy votes looming on Wednesday.

Odey took its position in Sirius on 18 February and then converted derivatives into ordinary shares on 21 February. The fund accused Anglo American and the Sirius board of undervaluing the company and pledged to oppose the 5.5p a share cash offer unless it was declared final.

In a letter to both companies Odey also said it would vote for any offer of 7p a share or more, arguing Anglo American could afford to pay substantially more for the company. Sirius has said with no alternative rescue plan on offer it is likely to collapse if shareholders reject Anglo American's offer.

Sirius is trying to build a fertiliser mine in North Yorkshire but has run out of money. A group of private shareholders has set up an action group in an attempt to raise funds and stop the takeover. A shareholder vote on 3 March requiring 75% to support Anglo American's offer could be closely contested.

Sirius shares rose 1.25% to 5.25p at 13:18 GMT, indicating investor wariness about whether the deal will be approved. Anglo American shares rose 1.2% to £19.65.40.