JO Hambro Capital Management, one of the leading holders of preference shares issued by Coats, is taking legal action to prevent the textiles group from delisting its shares from the London Stock Exchange.

JO Hambro, which is being represented by law firm McDermott, Will & Emery, plans to petition the High Court and will present its case at a hearing on Friday. The London-based investment firm, which owns 42% of Coats' preference shares, is also applying for an injunction to restrain Coats from delisting the shares.