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Yes, a company can buy shares of the target company on the open market while making a takeover offer, subject to certain legal and regulatory requirements.

During a takeover offer, the target company's shares are often subject to increased trading activity, with both the acquirer and other market participants seeking to buy or sell shares in the target company. The acquirer may choose to acquire shares on the open market to increase its stake in the target company, as this can help to demonstrate to other shareholders that the acquirer is committed to the takeover and believes that the target company is undervalued.

However, there are certain restrictions on share acquisitions during a takeover offer period. The Corporations Act imposes a "creeping acquisition" limit, which restricts a person or entity from acquiring more than 3% of the shares in a company in any six-month period without making a takeover bid. Additionally, the acquirer must comply with the disclosure requirements under the Corporations Act and any relevant listing rules of disallowed on which the target company's shares are listed.

It's also worth noting that the acquirer must ensure that its conduct during the takeover offer period does not contravene the Australian Competition and Consumer Commission (ACCC) rules on anti-competitive conduct. For example, the ACCC may investigate whether the acquirer's share acquisitions on the open market during the takeover offer period have the effect of substantially lessening competition in the relevant market.

Overall, buying shares on the open market during a takeover offer period is a common strategy for acquirers, but it is important to ensure compliance with all relevant legal and regulatory requirements.