The Delaware Supreme Court has upheld a judge's ruling preventing Martin Marietta Materials from engaging in any activity related to its takeover bid for Vulcan Materials for four months.
The ruling means Martin Marietta will not be able to nominate four directors to Vulcan's board at the company's annual shareholders' meeting Friday.
Martin Marietta had already moved ahead with terminating the company's exchange offer to merge with Vulcan after the judge in the case denied the Raleigh company's request for a stay pending a ruling on its appeal.
Martin Marietta has said it will continue to pursue a merger with Vulcan after the four-month period is over. But the company will have to wait a full year for the next change to nominate directors to Vulcan's board.
Leo Strine, the Delaware judge in the case, ruled that Martin Marietta violated a 2010 confidentiality agreement with Vulcan in making its hostile takeover bid in December.