Power struggle over Dobbies
Dobbies garden centres was today at the centre of a power struggle between a Scottish entrepreneur with links to Beatties and supermarket giant Tesco.
Sir Tom Hunter could lead a consortium in a bid to trump Tesco's £155 million bid for the garden centre chain, it emerged today.
Sir Tom, who owns more than 10 per cent of the Midlothian-based business, is understood to be in talks with Icelandic investment group Bauger.
Through its House of Fraser business, Bauger owns Wolverhampton-based stores group Beatties.
The entrepreneur, who already owns Wyevale garden centres, may also seek help for his bid from a rival supermarket, such as Sainsbury's or Waitrose.
Tesco shocked the City on Friday when it tabled a £15 a share offer for Dobbies, which has an outlet at Gailey near Wolverhampton.
If it acquires Dobbies, which has 21 stores mainly focused on Scotland and northern England, Tesco would look to use the stores to capitalise on the current boom in gardening and related demand for "green" products, such as composting kits and water butts.
Tesco has pledged to maintain the Dobbies brand, which dates back to 1865, and run the business along existing lines.
However, it is likely to pursue expansion in the south of England and offer a greater range of carbon-efficient products, including insulation and solar panels.
Takeover activity in the garden centre sector has been rife as investors eye the increased popularity of gardening and green issues, plus the chance to create destination stores with a wider range of products and services.
But Sir Tom, who with Wyevale already has bases at Albrighton, Rugeley, Shenstone, Newport in Shropshire and Bradley near Stafford, could see his plans for a counter-offer frustrated as Tesco has already built up a 28 per cent stake in the company.
