The Globe and Mail reports in its Saturday edition that GMT Capital, the second-largest shareholder in oil company Pipestone Energy, said on Friday it intends to vote against an all-stock deal proposed by larger rival Strathcona Resources as it undervalues the company. A Reuters dispatch to The Globe says that Canadian oil producer Strathcona plans to go public by acquiring Pipestone to create a combined business with a market capitalization of $8.6-billion. As per the all-stock deal, which is expected to close in October, Pipestone shareholders will receive 9.05 per cent of the pro forma equity in the combined company, with existing Strathcona shareholders owning the rest. Investment firm GMT Capital, which holds a 13.47-per-cent stake in Pipestone, said the buyout deal undervalues Pipestone Energy's shares. The acquisition requires approval from two-thirds of Pipestone shareholder votes cast at a meeting in September. Strathcona and Pipestone declined to comment.