Online broker Etrade Australia (Etrade) yesterday confirmed that its namesake in the United States had completely sold down its shareholding in the online broker.

It had previously been reported that Etrade USA had sold down just 2 per cent of its 6 per cent shareholding.

The news will put further pressure on ANZ to increase its $4.05 bid for Etrade, since it means that at least 6 per cent of the online broker's stock has been sold above ANZ's $4.05 offer price.

It is not known who has bought Etrade USA's shareholding, but talk in the market suggests it could be technology provider IWL, which said last month it was considering making a counter offer to that of ANZ.

At the last count, IWL had 3.2 million shares in the online broker, or about 3.2 per cent of the company.

The news comes on the same day that it was revealed that just 1 per cent of Etrade Australia shareholders had taken up ANZ's offer.

ANZ spokesman Paul Edwards said he was not aware that Etrade USA had sold down its entire holding and stressed that any potential bid by IWL was irrelevant.

"IWL should put up or shut up. They hold an insignificant shareholding with no prospect of a successful bid," he said. "This deal has a bit longer to play out."

ANZ's offer, which values Etrade at about $268 million, has come under heavy criticism from shareholders and Etrade's management has urged shareholders to reject it.

Not that they need much encouraged to turn the offer down.

IWL announced in March it did not intend to accept ANZ's offer and increased its stake in the company with a view to a potential bid of its own.

The bid was also met with resistance by Caledonia Investments - its second biggest shareholder - which instead decided to increase its holding from 9 per cent to 12 per cent.

Share research and advisory group Invest4Profit called the offer highway robbery and urged its clients, which it claims owns up to 10 per cent of Etrade, to reject the offer.

ANZ told InvestorDaily yesterday, however, it had no plans to raise the offer and that if its bid was withdrawn Etrade's share price would fall to more realistic levels.

"There seems to be some realism creeping back into the market with Etrade Australia's share price falling on a daily basis," Edwards said.

Etrade shares were trading at $4.11 when InvestorDaily went to press, down 0.5 per cent on the day.

In a letter to Etrade shareholders this week ANZ extended its offer to buy the remaining two thirds of Etrade it does not already own from mid April to early May.

It said the independent valuation of Etrade shares by Grant Samuel at between $4.22 and $4.74 was unrealistically high.