ANZ's plans to take over Internet broker E*Trade Australia by buying the 65.8% stake it doesn't already own in the business could be scuppered by rebellious shareholders.
ANZ needs 90% acceptance of its A$280 million bid for the unit. The bank said on Friday that the offer valued E*Trade Australia at A$407 million - a 17% premium to the firm's average share price over the last month.
But since ANZ disclosed its takeover plans last week boutique fund manager Caledonia Investments has spent A$4.2 million to increase its stake in the unit from 9.45% to 10.46%.
Furthermore Invest4Profit - a share research and advisory firm that claims its subscribers collectively own around 10% of E*Trade Australia - says it will tell its members to reject the deal.
Paul Nojin, principal of Invest4Profit, told reporters at The Australian that he would call an extraordinary shareholder meeting if the bank did not up the offer.
Nojin says the $4.05 per share bid undervalued E*Trade Australia, adding that there were parties who would pay $5 a share to buy ANZ's stake.
Last week Kerry Roxburgh, chairperson, E*Trade Australia, said the ANZ offer was "in the best interests of all shareholders" and said the board was "pleased for shareholders to consider it".