Mexican investor Joel Rocha Garza, who holds...

Mexican investor Joel Rocha Garza, who holds a 6.2% share in Smith Laboratories, a San Diego company that makes orthopedic products, said he has formed a shareholder group to oppose the proposed merger of the company with International Power Machines Corp.

Under the terms of the merger, each share of Smith would be exchanged for a share in the new company, and each IPM share would be exchanged for 2.1 shares, or $4.50 in cash, according to a U. S. Securities and Exchange Commission filing.