West Coast moves to block Dobbies cash call
West Coast Capital, the vehicle of Scottish entrepreneur Tom Hunter, has moved to block garden centre group Dobbies' recently announced £150m cash call, in the latest round in its battle for control with supermarket giant Tesco.
In a statement, Dobbies said that legal proceedings were initiated by West Coast Capital seeking an interim order to block the company's proposed open offer to shareholders.
The statement added that the board believes the open offer is in the best interests of the company and provides access to funding on attractive terms in current market conditions that will be earnings enhancing. The company intends to present a robust defence of its strategy at the court hearing, it said.
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West Coast owns 29% of Dobbies and resisted a takeover bid by Tesco last year, though the supermarket group now owns a majority of the shares.
Dobbies announced the plan to raise £150m through an open offer after dismal summer weather in 2007 and difficult trading conditions hurt annual earnings. The offer terms are six new shares for every five held at £12.00 each. Tesco is underwriting the share issue.
West Coast owns 110 garden centres including the Wyevale and the Blooms of Bressingham chains.
