MULTI-FINELINE Electronix (M-Flex) has once again been rebuffed by the Securities Industry Council (SIC), after it made its second attempt to obtain the council's approval to withdraw its takeover offer for MFS Technology. In a statement released in the United States on Friday, Nasdaq-listed M-Flex said that the SIC has also ruled that it should extend the deadline by which the pre-conditions for the offer will need to be satisfied.

M-Flex had filed two lawsuits against some of its stockholders, which might affect the fulfilment of these pre-conditions, the SIC said. As a result, the SIC wants the deadline extended by three months, from Dec 31 to March 31. M-Flex is now 'considering its response' to the SIC and whether to agree to the extension, the company said.

This latest twist in M-Flex's takeover saga represents yet another setback for the firm, which first announced a bid for mainboard-listed MFS in March. Both companies are units of WBL Corp, previously known as Wearnes.

The takeover would have created the world's second-largest maker of flexible printed circuit boards, but M-Flex decided in August that it had made a mistake.

M-Flex applied to the SIC to withdraw the offer, saying that the firm's independent special committee of directors had withdrawn its recommendation for the takeover. The firm cited several factors, including significant drops in MFS' net sales and income since March.

This application was denied by the SIC, which prompted M-Flex to lodge an appeal.

In its latest statement, M-Flex said that it has not formally withdrawn its offer.

However, it added that there are some pre-conditions that could 'relieve' it from proceeding with the takeover offer.

These include the likely failure of the US Securities and Exchange Commission to declare its offer registration agreement effective before the deadline by which pre-conditions must be satisfied.