Analysts have questioned the viability of the Mbalam project because of its remote location and given recent iron ore price volatility amid a slowing world economy.
CMC Markets analyst Michael McCarthy said Hanlong had pulled its bid too many times.
"What a disaster," Mr McCarthy said.
"If you ever wanted to come up with a difficult takeover bid to do, this would be it."
The market had persistently priced the stock below its takeover price, so there were persistent doubts about the viability of the deal.
"There is something quite wrong here and my sense is this deal will not go ahead."
SDL Price at posting:
39.0¢ Sentiment: None Disclosure: Held
