Imperial Tobacco is to launch a legal appeal against Government plans to ban cigarette vending machines in pubs.
The ban on vending machines will come int force on 1 October 2011 but Imperial Tobacco, and its subsidiary vending machine company Sinclair Collins, will now seek a judicial review of the ban.
It is in favour of remote controlled or token-operated machines in place of an outright ban.
"Legal action is always a last resort but the Government's decision to ban cigarette vending machines is so disproportionate and unnecessary that it must be challenged," said chief executive Gareth Davis.
"We do not want children to smoke and supported the Government's proposal to stop underage access through the introduction of electronic ID cards, token mechanisms and remote control technology.
"These are effective solutions which have been implemented in a number of other countries and it is a matter of great regret that the UK Government ultimately chose to disregard all of these options in favour of a ban that will result in significant job losses in the vending industry."