The board of Dobbies is using a research note from broker Seymour Pierce to push the sale of the garden centre chain in favour of Tesco’s offer.
Board members are now encouraging shareholders to accept what it describes as an 'excellent offer' for their shares from Tesco Holdings and believes it would be in their best interests to do so.
Dobbies also states that the outcome would be preferable to the alternative of having two major shareholders, one of which is Sir Tom Hunter with his investment vehicle West Coast Capital (Lios).
Its recommendation follows the release of the research note this morning and the announcement that Tesco has further extended the closing date of its offer, bringing the final date to 1pm Sunday, August 19.
Tesco's offer values each Dobbies share at 1500 pence. The board have stressed to shareholders that this is the only offer available and it cannot now be increased.
The bid from Tesco Holdings is conditional upon receiving sufficient acceptances so that it controls over 50% of Dobbies shares.