ANZ's bid to take control of online broker E*Trade could be scuppered by a group of rebellious shareholders.
Share research and advisory group Invest4Profit has said it will tell its clients, who they claimed collectively own 10 per cent of E*Trade, to reject the deal out of hand.
For the deal to go ahead ANZ needs 90 per cent shareholder approval.
"My first reaction to the ANZ bid was 'you must be joking'. This offer is scandalous," Invest4Profit director Paul Nojin said.
My clients own a significant amount of shares in E*Trade and they will not be selling their shares at less than $6.00."
ANZ this week offered E*Trade $4.05 per share for the 65.8 per cent of the company it does not already own.
Nojin said E*Trade was worth much more than the ANZ offer price, particularly if the company goes through a turnaround. "I tell you its highway robbery if this deal gets through at the current price that ANZ is offering," Nojin said.
"If new management replaced the current inept and incompetent one, the business earnings could be much higher. Why should shareholders miss out on the potential growth of the business? It's scandalous."
Other shareholders in the business include fund managers Caledonia which includes 9.45 per cent of the company and UBS which has a 5 per cent stake in the business.
Caledonia was not available for comment at time of press for InvestorDaily.
