David Jones has been placed in a trading halt as it faces court.
Shares in the department store have been frozen pending a court hearing today.
The Federal Court is set to hand down a verdict on a $2.2 billion takeover bid by South African-based Woolworths.
This week, David Jones shareholders voted overwhelmingly in favour of the $4 a share offer.
However, the Australian Securities and Investments Commission could use the hearing to block or delay the takeover.
The corporate watchdog has expressed concerns over the involvement of retail powerbroker Solomon Lew in the deal.
Woolworths recently offered more than $200 million to Lew for his stake in fashion retailer Country Road.
Woolworths made the offer after Lew purchased a 10 per cent stake in David Jones, which could have potentially blocked its takover bid.
If the takeover is approved by the Federal Court, the department store will be under foreign ownership from August 1.