Desmond has published an open letter to fellow Ladbrokes shareholders, backed by a detailed presentation on a dedicated website, outlining why he believes the proposed £2.3bn merger with its rival, Coral, should not go ahead.

One of Ladbrokes' largest institutional investors has told The Daily Telegraph that it shares some of Dermot Desmond’s misgivings about the proposed take over - and that the issue will be discussed before next Tuesday’s extraordinary general meeting.

Mr Desmond, who’s been a shareholder in Ladbrokes since 2006 and who sold his Betdaq betting exchange to the firm for €30m two years ago, suggests the deal is more favourable to Gala Coral’s private equity shareholders, which includes companies well known in Irish property circles, Apollo and Cerberus.

Irish firms Paddy Power and Boyle Sports have confirmed they would look to acquire some of the possible 1,000 bookie shops that would have to be divested by the combined Ladbrokes/Coral Group for competition reasons.