The $65bn merger between commodities trader Glencore and miner Xstrata was last night hanging in the balance, with people close to the deal voicing doubts it could win approval from shareholders unless key terms of the deal are changed.

Xstrata is now considering bowing to investor pressure over multimillion-pound windfalls proposed for its senior executives, in a late effort to save the merger, according to people familiar with the discussions. Mick Davis, Xstrata’s chief executive, and his counterpart at Glencore, Ivan Glasenberg, met in London on Monday and discussed the shareholder revolt against the merger.

With just over two weeks until Xstrata shareholders are due to vote on the deal, both companies now concede that it is unlikely that the deal will go through in its current form. “The deal is not looking positive,” said one person close to the merger talks.