Billionaire entrepreneur Sir Tom Hunter yesterday lost a legal bid to prevent garden centre chain Dobbies raising £150m from shareholders.
Sir Tom, who owns 29.9 per cent of the chain, was hoping to block an open offer announced by the Midlothian-based group in April to strengthen its balance sheet and fund expansion.
Supermarket giant Tesco owns 65 per cent of Dobbies after a £155.6
m takeover last year and is underwriting the issue of new shares, meaning it will buy any not taken up by existing investors.
It will cost Sir Tom's West Coast Capital (WCC) investment vehicle around £40m to buy the extra shares and maintain its stake in the business, which could otherwise fall to around 15 per cent.
Yesterday the Scottish Court of Session refused WCC's attempts to gain an interim order blocking the open offer.
WCC said it planned to speak to Tesco to seek a "fair solution" for all 300 shareholders in Dobbies, many of whom it said supported their action.
"Should a fair resolution not be forthcoming we reserve our right to continue down the legal process," the company added.
Sir Tom is a major investor in garden centres, owning the Wyevale and Blooms of Bressingham chains. He said last year Tesco's offer for Dobbies undervalued the business.
Tesco said it was "delighted" with the court ruling. A spokesman said: "Tesco believes this offers an attractive means for Dobbies to raise the capital it needs for future growth."
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