Scottish billionaire Sir Tom Hunter today took another shot at Tesco after beginning legal action to block a £150 million rights issue planned by Dobbies Garden Centre, which is majority owned by the supermarket giant.

A spokesman for Sir Tom , who also owns Dobbies’ chief rival Wyevale Garden Centres, said: “We do not believe this offer to be in the interests of all shareholders.”

A spokesman for Tesco said: “We are surprised that West Coast Capital [Sir Tom's investment vehicle], which says it is committed to long-term growth at Dobbies, should seek to prevent it raising fresh funds. The capital raising was “vital” for Dobbies’ future, Tesco added.

The £150 million rights issue, earmarked to expand Dobbies existing network of 23 stores, is worth more than the company itself. Dobbies, which announced the rights issue last month, said this morning that Mr Hunter’s West Coast Capital investment vehicle has filed court papers asking for an interim order to block the rights issue. Dobbies said that it would make a “robust defence” of its plans at a court hearing.

West Coast Capital, which owns a 29.9 per cent stake in Dobbies, faces paying out £44 million to maintain the level of its investment and buy up extra shares made available through the rights issue.

If West Coast Capital, or any other shareholders, do not take up the 12.45 million shares that are being offered at £12 each, Tesco's 65 per cent stake could rise to 83 per cent, thereby effectively ending a battle that began last year when Sir Tom claimed that the retailer's £15 a share offer for the gardening group undervalued the company.

Dobbies said today: "The board of Dobbies hopes for an early resolution in order to allow it to concentrate its energies on running the business to deliver returns to the benefit of all shareholders."

Sir Tom is Scotland's richest person with a £1.05 billion fortune according to The Sunday TImes Rich List .

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