Tycoon Sir Tom Hunter has failed in his attempt to halt a rights issue by garden centre Dobbies.

AIM-listed Dobbies, which is majority-controlled by Tesco, intends to issue more shares to fund development of the business. However, Hunter, who owns 29.9 per cent of the retailer, had argued the initiative was not in the interests of minority shareholders.

Hunter staged legal action, but the Edinburgh Court today rejected his attempt to have an interim order imposed halting the plan. Dobbies will now proceed with the offer by putting the resolution to approve it to a shareholders vote at an AGM on Wednesday May 21.