The Takeovers Panel has refused to intervene in construction giant CIMIC's $243 million takeover bid for mining services company Sedgman.
Sedgman last month asked the panel to declare the offer unacceptable on grounds that CIMIC had reserved the right to deduct the value of any franking credits from the offer price and that it had not disclosed adequate information in its bidder's statement.
Sedgman had also sought an interim order to stop CIMIC from processing any share acceptances from Sedgman shareholders.
The Panel said on Wednesday it decided not make a "declaration of unacceptable circumstances" as the suitor had sufficiently dealt with the issues in its second bidder's statement.
CIMIC amended its original bidder's statement on January 28 to provide further information and had clarified it would not be deducting franking credits from the offer price.
The construction giant, formerly called Leighton Holdings, launched its takeover play for Brisbane-based Sedgman earlier in January, as part of efforts to strengthen its hold in the Australian market.
CIMIC was already Sedgman's largest shareholder with 36.99 per cent holding. It made an unconditional offer to buy all remaining shares at a price of $1.07 each.
Despite Sedgman's application to the Takeovers Panel, CIMIC has continued to buy its shares in the market, and held 45.4 per cent stake in the target company as of February 1.
At 1200 AEDT, Sedgman shares were trading 0.3 per cent lower at $1.07 each.
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