21 Jun 2007


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Tesco still on course for Dobbies takeover

Tesco

Dobbies

Tesco is still on course to take control of the Dobbies garden centre chain despite Scottish entrepreneur Sir Tom Hunter upping his stake to 25.57%.

Reports earlier today had suggested Sir Tom's move was enough to block the agreed takeover of Dobbies by Tesco under the initial terms of the deal, but the supermarket moved quickly to announce it had posted its offer document to shareholders and the acceptance level to gain control had been cut to 50%.

Dobbies agreed to be taken over by the supermarket giant for £156.6m, or £15 a share, but Sir Tom has been increasing his stake in the business and a 25% share would have originally been enough to block Tesco's bid.

However, Tesco said in a statement that its offer had been posted to shareholders and would be open until July 18.

It is still unclear at this point whether Sir Tom, who owns the garden centre chain Wyevale, will make a full bid for Dobbies but is said to be considering his options.

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