Investment company Guinness Peat has increased its stake in Scottish cashmere knitwear firm Dawson International to more than 28 per cent after buying yet more shares in the clothing manufacturer.

According to reports, Guinness Peat bought 1.25m Dawson shares (1.23 per cent) of the company near the close of trading last week - the seventh time the investment house has bought Dawson shares in recent weeks.

Two years ago, Guinness Peat made a conditional 85 pence a share offer for the Kinross company but decided against proceeding with a bid, sparking rumours it wanted to trigger a bidding war.