Technology provider IWL has announced it is considering tabling an alternative bid to ANZ for online broker Etrade Australia.

Shares in Etrade Australia soared 3.4 per cent on the news yesterday, jumping from $4.22 to $4.27 by market close. They were trading at $4.18 on Tuesday.

Etrade is already the subject of a friendly takeover proposal by ANZ.

IWL, however, announced yesterday that as a shareholder it did not intend to accept ANZ's $4.05 offer and increased its stake in the company with a view to a potential proposal.

"IWL does not presently intend to accept the recent . . . offer by ANZ and is currently finalising its strategic options for its holding in Etrade Shares," the company said in a statement to the Australian Stock Exchange yesterday.

"As part of this process, IWL is, amongst other things, considering the formulation of an alternative proposal to that put forward by ANZ, which it believes could be of greater benefit to Etrade Australia shareholders."

The firm said it would consult with Etrade's clients, business partners and major shareholders in anticipation of a counter offer.

The news will put ANZ under further pressure either to raise its bid or pull out altogether. Earlier in the week Etrade's US namesake, Etrade Financial, sold down 2.3 million shares worth $9.6 million.

ANZ spokesman Paul Edwards said, however, that ANZ had no plans to raise its bid.

"We are a long term strategic investor in Etrade Australia . . . and are interested in holding and building our stake rather than selling." 

He added that IWL could not buy 100 per cent of Etrade under either a bid or scheme without ANZ's support as a 34 per cent shareholder.

One million of ETrade USA's shares went to Etrade Australia's second biggest shareholder Caledonia Investments (Caledonia), with the rest going to the market and presumably IWL.

Caledonia now has a 12 per cent stake in Etrade Australia, which is more than enough to block ANZ's bid. The bid needs 90 per cent shareholder approval.

ANZ announced in November that it intended to buy up the remaining two thirds of Etrade Australia it does not already own.

The bid was met with resistance by a number of key shareholders including Caledonia and Share research and advisory group Invest4Profit, whose director Paul Nojin called it "highway robbery".

Nojin said he would advise his clients, who he claims own up to 10 per cent of Etrade Australia, to sell at no less than $6.00.