Brian Myerson, the controversial activist investor, has failed in his second attempt to seize the controls at D1 Oils, after being outvoted by the funds which pitched against him the first time.

D1 said that a "substantial majority" of investors voted against Mr Myerson's move to oust four directors, including chairman Barclay Forrest, at the oilseed group, and replace them with his own team.

While the company did not name the shareholders which had supported the deal, they are believed to include giants such as Gartmore and Jupiter, which also helped stymie Mr Myerson's plans last year to merge D1 into a cane ethanol operation being set up by his Principle Capital empire.

"The board would like to thank independent shareholders for their continuing support," Mr Forrest said.

'Disingenuous and dishonest'

Mr Myerson's failure to take control at D1 represents a second setback for him within a week, after he was penalised by the UK Takeover Panel for not declaring fully his interests in a power struggle at Principle Capital.

The panel, which said he had breached the UK's Takeover Code and accused him of offering "co-ordinated, disingenuous and dishonest" explanations, in essence barred him from takeover situations for three years, a ruling Mr Myerson argues is flawed, and may challenge in European courts.

He has already resigned directorships at Liberty, the retailer, and Sirius, a listed property company.

However, Mr Myerson maintained his campaign at D1, of which Principle Capital is the biggest investor, and which he wants to be sold-off or broken up.

Sale potential

D1 has investigated a sale under its own steam, and announced last month it had agreed outline terms with Australia-based Mission NewEnergy, a rival in processing jatropha, a biodiesel feedstock which can be grown on poor-quality land and so does not compete so much with food crops.

It has also received other approaches and is also finalising its options should it remain an independent company.

Mr Forrest said on Monday that D1 would continue to focus "on the running of the business while we continue discussions with potential offerors, and conclude our strategic review".

The "uncertainty" created by Mr Myerson's challenge "was not conducive to those discussions and the Board is pleased that this uncertainty has now been resolved", the company added.

D1 shares closed 3.4% higher at 6.65p.