Novus' bid was knocked back despite protests that Medco had failed to provide enough disclosure in two bidder's statements for shareholders to accurately consider the hostile takeover offer.

The panel will only prevent dispatch where it considers that the bidder's statement contains defects which can't be adequately remedied by a supplementary statement.

Any shortfall in disclosure from Medco's bid document can be dealt with through a subsequent bidder's statement, or by Novus itself.

Novus had raised three issues with the panel, mainly related to a notes issue by the company in the US. Novus said the Medco bidder's statement contains no information as to whether the Indonesia company intends to refinance the notes issued and that insufficient information had been supplied iabout an independent expert's report into the value of Novus obtained by Medco.

The panel is yet to decide whether or not these claims have merit but did conclude that even if they do, Novus can address the situation with a supplementary statement. Medco has moved ahead with its mailout.

In late December Medco launched a $326 million takeover bid with a $1.74 per share offer after the Madani report valued the company at between $1.40 and $1.90 per share.