Rangers chairman Dave King 'must make £11m shares offer'
Panel On Takeovers and Mergers believes the Ibrox boss has not complied with the law.
A judge has been urged to force Rangers chairman Dave King to make an £11m offer for the remaining shares in the club.
Advocate James McNeill QC told Lord Bannatyne the Panel On Takeovers and Mergers believes the Ibrox chief has not complied with the law.
The lawyer told the judge how the 2006 Companies Act dictates that entrepreneurs who hold a 30% stake in businesses are compelled to make an offer to buy remaining shares.
He said financial investigators believe they have established Mr King acted "in concert" with three wealthy fans nicknamed the Three Bears.
Mr McNeill said Mr King teamed up with George Letham, George Taylor and Douglas Park to acquire more than 30% of voting rights in Rangers in late 2014.
He told the Court of Session how financial investigators concluded Mr King was in control of the shares and should be liable to make an offer for the remaining shares.
The court heard how Mr King told the investigators he did not act with the three other businessmen.
He told the financial investigators 14% of the shares were controlled by a company called New Oasis Asset Management Limited, registered in the British Virgin Islands.
Mr King allegedly told investigators these shares were purchased using money from his family trust.
The businessman said the company was independent from him.
The court heard financial investigators had obtained emails showing Mr Letham had been in touch with him over the share purchase.
The investigators also concluded Mr King controlled New Oasis Asset Management Limited shares and was therefore liable to follow company law and make an offer at 20p per share.
Urging Lord Bannatyne to pass an order, Mr McNeil said: "Mr King is in fact in control of the voting rights.
"The court should be satisfied that it can make an order seeking compliance under the legislation."
Mr McNeill was speaking on the first day of a two-day session at the Court of Session.
The panel, which regulates deals in the UK, said it started proceedings in Edinburgh after Mr King ignored an order to make an offer for the remaining shares.
This is despite the fact that the club is no longer listed.
Under UK rules, any group of shareholders that builds up a 30% stake in a public company has to make a cash offer to buy the rest of the shares at the highest price they have paid over the past 12 months.
The court also heard Rangers shares are currently worth around 27p and Mr King would be expected to make an offer at 20p.
The hearing, before Lord Bannatyne, continues.