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Supermarket chain Tesco has revised the terms of its £155.6 million offer for the Dobbies garden centre chain after a potential takeover rival acted to block the bid.

The investment firm of Scottish billionaire Sir Tom Hunter yesterday raised its stake in Midlothian-based company Dobbies to 25.7 per cent.

West Coast Capital's move to snap up an additional 315,783 shares in the garden centre chain for 1,845 pence apiece has effectively blocked Tesco's 1,500 pence a share offer for Dobbies because under the original deal agreed by the two companies the supermarket chain agreed that the deal would be dependent on it securing the agreement of 75 per cent of its shareholders.

Earlier yesterday Sir Tom purchased 102,500 Dobbies shares, paying the same price for them as he later did in the subsequent sale, in a bid to up the 20.6 per cent stake his company held in the firm a week ago.

It is not yet clear whether Sir Tom, who owns rival garden centre chain Wyevale and Blooms of Bressingham, will choose to make his own bid for Dobbies.

A spokesman for the entrepreneur told the Reuters news agency his company were continuing to "consider all options".

But in an apparent effort to fend off any rival bid, Tesco announced late yesterday that it had posted an offer document to Dobbies' shareholders which made the revised condition that its offer be accepted by just 50 per cent, rather than 75 per cent, of investors.

Announcing its decision to bid for Scottish-based Dobbies earlier this month, the supermarket group said such a deal would allow it to meet increasing consumer demand for environmentally friendly products.