The US hedge fund looking to buy Bull-Dog Sauce Co. has lost an appeal to block the Japanese company from putting anti-takeover measures into place.

Steel Partners said this morning (9 July) that the Tokyo High Court has turned down its appeal to stop Bull-Dog Sauce issuing more shares in the company.

Bull-Dog Sauce's plans would dilute Steel Partners' stake in the company, which stands at some 10.52%.

Last month, the court ruled Bull-Dog could proceed with its "poison pill" plan to thwart Steel Partners' US$260m bid. Bull-Dog believes a takeover is not in the "common interest" of the company's shareholders.

A spokesman for Steel Partners said the hedge fund is mulling its options and could make an announcement tomorrow.

"We need more time to analyse the judgement," the spokesman told just-food. "There is another legal recourse, potentially, to the next court up, the Supreme Court."