A bitter battle for ownership of Sedgefield racecourse has been raging for more than two years.

Northern Racing, owned by millionaire entrepreneur Stan Clarke, has been bidding to add Sedgefield to its portfolio since 1998.

Mr Clarke has received praise for the improvements made at courses already under his control, at Newcastle, Uttoxeter and Brighton.

He has promised bigger crowds, better racing and more prize money at Sedgefield - but his motives were met with suspicion from the start.

There were fears that he planned to transfer some meetings to a new all-weather track at Newcastle, or even close the track altogether, suggestions that Mr Clarke has consistently denied.

His vision convinced many of the course shareholders, who signed sale agreements with Northern Racing, but one stakeholder held out to stage her own takeover bid.

Hilary Scotto, whose late husband Frank, was chairman at Sedgefield for 20 years, refused to pledge her 22 per cent stake. Her efforts to block the Northern Racing bid, believed to be more than £1m, relied on the rules of the course drawn up in 1927.

She said a pre-emption clause in the company's articles of association meant existing shareholders should be offered any shares up for sale, before they are offered to an outside party.

That would give Mrs Scotto first option to buy the shares. Other shareholders tried to call a meeting to delete the pre-emption rights, but Mrs Scotto went to the High Court to get it stopped.

The battle for the takeover turned in Mr Clarke's favour in January this year with a crucial High Court ruling.

Lord Hoffman, sitting as a High Court judge, ruled that shareholders could enter into a sale agreement with Northern Racing and did not have to inform the board of their intentions.

Mrs Scotto went for a High Court appeal, which was heard in London in October.

But yesterday's ruling by three top judges, to uphold the earlier decision, appears to have settled the matter.

Northern Racing now has effective control of 75 per cent of the racecource's shareholding.

Mrs Scotto, who was not in court to hear the decision, and has declined to comment, has been refused permission to appeal to the House of Lords, but could still petition the Law Lords directly for an appeal hearing.