The Takeovers Panel announced today that it has ruled against Midwest Corporation's (MIS) application regarding a bid by Murchison Metals to acquire the fellow miner.
Murchison's takeover offer was an unconditional all-scrip bid of $769 million.
On November 8, Midwest had sought a declaration of unacceptable circumstances relating to deficiencies it claimed existed in Murchison's Bidder's Statement.
"Midwest submitted that the bidder's statement should contain evidence that Murchison had a reasonable basis for a number of statements in relation to targeted iron ore production at the Jack Hills project, in which Murchison has a 50% interest," the panel reported.
Since Midwest's application, however, both parties have tried to resolve the dispute.
The panel ruled that although the bid had the "potential to mislead and confuse," subsequent events mean "Midwest shareholders are now in a position where they can evaluate for themselves the relative merits of" the opposing cases.
"On that basis, the Panel decided not to make a declaration of unacceptable circumstances."
"The Panel notes the efforts by parties to resolve the dispute between them in the period since the application, and appreciates the time and efforts they have taken."
Earlier this month, Midwest also received a proposal from its joint venture partner Sinosteel Corporation of China, which offered $5.60 cash per share, valuing Midwest at $1.19 billion and trumping Murchison's bid.
However, Murchison says Sinosteel's proposal is "incomplete, non-binding and subject to due diligence and other conditions".
Shares in Midwest Corporation fell by 2.22% or 11 cents and were trading down at $4.85 at midday.
