Sir Tom Hunter backs down in Dobbies battle

May 21 2008

West Coast Capital agrees to sell stake in garden centre business to Tesco

SIR Tom Hunter has thrown in the towel in his battle with Tesco over garden chain Dobbies.

Hunter's West Coast Capital investment group has agreed to sell its 29.2 per cent stake in the Midlothian business for more than £36 million.

The latest development comes after a court battle where West Coast Capital lost its attempt to stop Dobbie's from going ahead with a share issue which would have diluted its stake.

Following approval of the cash offer, which values each share at 1200p, Tesco will have more than 94 per cent of Dobbies.

The supermarket giant intends to de-list the company from the AIM.