Martin Marietta loses appeal of Vulcan bid ruling

Reuters reports that Martin Marietta Materials Inc. lost its appeal to overturn a court order that halted its $4.5 billion hostile bid and proxy contest for rival Vulcan Materials Co.

Delaware’s Supreme Court today affirmed a ruling by the state’s Court of Chancery, which prevented Martin Marietta from seeking to elect four nominees to Vulcan’s board at tomorrow’s meeting of Vulcan shareholders.

The lower court halted Martin Marietta’s bid and proxy contest for four months as punishment after Martin Marietta breached a confidentiality agreement the two companies signed in 2010, when they engaged in friendly merger talks.

Vulcan Materials issued a statement following the decision, saying, “Vulcan’s board and management team are committed to enhancing long-term value for all shareholders, and we look forward to continuing to deliver on our growth strategy and cost-savings initiatives.”