Kevin McCabe remains in pole position to complete the £200m takeover of Teesland despite revelations that a hedge fund has built up a significant minority stake in the company during the past week.

The hedge fund, Polygon Global Opportunities Master Fund, has assembled a 21.4% stake in the takeover target via contracts for differences and buying shares from Teesland shareholders at prices just above McCabe’s offer price.

In a statement issued this morning, the Teesland board of directors admitted they were not sure of Polygon’s intentions towards the company but told shareholders it had not received any further bid approaches since executive chairman Kevin McCabe offered 159.25p a share to take the company private just before Christmas.

The first closing of the takeover is expected to take place tomorrow afternoon at