ANZ Banking Group has extended its takeover offer for online broker ETrade Australia by just over two weeks.
The closing date has been extend to May 4, from April 18, after the bank said ETrade shareholders would benefit from more time to consider its A$4.05 ($4.58) per sharecash offer.
"ETrade faces a number of uncertainties and business challenges which are mentioned in the target's statement and the independent expert's report," ANZ head of personal division Brian Hartzer said.
In a letter to shareholders, Mr Hartzer said ETrade's directors had identified growth management, recruitment and retention of key staff and systems developments as challenges ahead.
ANZ said its 34.2 per cent stake in ETrade rules out another group taking over the broker without its support.
Mr Hartzer said an independent expert's valuation of ETrade was highly qualified and subject to considerable uncertainty.
ANZ's offer values ETrade at A$407 million ($460.4 million), but the independent expert's valuation pegs the value between A$424 million ($479.5 million) to A$476 million ($538.6 million).
"In ANZ's view, the (independent expert's) valuation is unrealistically high," Mr Hartzer said.
"The valuation is at a substantial premium to all other listed on-line broking companies in Australia and the US on a price to earnings multiple basis."
Shares in ETrade eased one cent to A$4.14 ($4.68)while ANZ shares improved 42 cents to A$29.97 ($33.90).
