Rangers chairman Dave King has been ordered to make an £11m offer to the club's shareholders after losing a legal battle.

Judge Lord Bannatyne ruled on Friday that King needs to offer investors 20p per share for the share capital not already controlled by him and three other businessmen.

Legislation dictates those who hold a 30% stake in businesses are compelled to make an offer to investors to buy remaining shares.

The decision comes as a consequence of an action brought to the Court of Session in Edinburgh earlier this year by the Panel on Takeovers and Mergers.

The financial watchdog took King to court because it believed he did not comply with the terms of the 2006 Companies Act.

Investigators acting for the panel concluded Mr King acted in concert with the so-called Three Bears - businessmen George Letham, George Taylor and Douglas Park - to acquire the shares.

The quartet acquired more than 30% of voting rights in Rangers in late 2014.

The money to buy the shares came from offshore trusts in the name of Mr King's family.

Lawyers acting for King said he did not have the money to make the £11m offer because he was "penniless".

Mr King's legal team also argued the shares were acquired by cash from his family's trusts.

The businessman claimed he did not have direct control over these trusts and a company registered in the British Virgin Islands had control over some of the shares.