Tim Waterstone's battle to take over WH Smith rumbled on yesterday as he met major investors holding 40 per cent of the high street chain in Britain to outline his proposals for its future.

His unexpected bid approach was rejected by the board last week, who said it did not offer shareholder value. The group, headed by the founder of Waterstone's bookstores, offered 200p in cash plus shares in a new firm in return for each current WH Smith stake.