Tesco empire blooms as year-long fight to own Dobbies reaches an end

Published on Friday 1 August 2008 10:39

TESCO has completed the purchase of all of the shares at Dobbies Garden Centre.

It ends a year-long battle for the Midlothian-based firm.

The supermarket giant had been locked in conflict with entrepreneur Sir Tom Hunter in a bid to take complete control of the business.

Tesco Holdings acquired more than 90 per cent of the shares then invoked section 979 of the Companies Act 2006 to force the sale of remaining shares.

In a statement released today, the firm, led by chief executive Sir Terry Leahy, said: "Tesco Holdings has now acquired 100 per cent of the issued share capital of Dobbies."

The bitter feud between Tesco and Sir Tom saw the supermarket giant taken to court by the entrepreneur over plans for an open offer of new shares that would dilute his stake.

Its battle for control of Dobbies started a year ago when it tabled a 155.6m bid.

But Sir Tom's investment vehicle refused to sell its stake and responded by gradually increasing its stock of shares above 25 per cent.