Macquarie Telecom has lost its bid to force the Bulletproof board to change its response to MacTel's acquisition offer for the company.
Last month the hosting provider went to the federal Takeovers Panel in an attempt to make the Bulletproof board address alleged "deficiencies" in its response to the acquisition offer.
Late last year Bulletproof's board rejected MacTel's $18 million takeover offer as being "opportunistic" and not reflective of the company's true value.
MacTel claimed the board's response was unbalanced and failed to provide shareholders the information needed to properly assess the offer.
However the Takeovers Panel today said it had declined MacTel's request to force a reconsideration.
The panel said it was satisfied with the information Bulletproof's board had provided shareholders.
Macquarie Telecom made its offer in late November based on a price per Bulletproof share of $0.11.
Its effort to acquire Bulletproof was further complicated late last month when IT service provider AC3 came in with a higher bid for the company.
AC3 offered 15.2 cents cash per share.
Bulletproof's shares are currently trading at $0.14. At the time of Macquarie Telecom's offer they were trading at $0.067.
Bulletproof CEO Anthony Woodward has given MacTel the right to buy his 16 percent shareholding.