"We are expecting that quite significant acceptances will come through shortly, following the very heavy trade in ANI shares," Simon McKeon, executive director of Macquarie Bank, told Reuters.

Macquarie Bank is advising soon-to-be-listed Smorgon on its takeover offer for ANI, made up of a scrip and cash option of three of its shares plus A$3.15 for every seven ANI shares, or A$1.15 in cash for each ANI share.

Investors have been racing to buy ANI to lock in access to Smorgon stock, set to begin trading on the Australian Stock Exchange on February 3 under the dealing code.

The family-run steel company has said it plans to raise A$175 million through its first major public offer to partly fund its takeover offer for ANI.

After the float, about 40 per cent of the companywill be inpublic hands. Of that percentage, the offer, which opened on Monday, is for 51 million ordinary shares, or about seven per cent of Smorgon's issued shares.

The remainder of about 33 per cent will be a mix of shares to ANI shareholders who accept the scrip/cash alternative and underwriters of the float.

Market enthusiasm for shares in Smorgon, viewed as tough to get, have catapulted ANI at or near the top of the market's list of most active stocks for nearly a week.

On Wednesday, ANI topped trade as more than 21 million shares changed hands. McKeon said the acceptances were "overwhelmingly" for the scrip and cash alternative, and would likely enable Smorgon to buy the whole of ANI.

"We're quite hopeful that's going to happen," he said.

"We're not aware of any big shareholder who's planning to keep their shares. It's pretty much all over." Its bid for ANI officially closes on January 28.

Smorgon said on Wednesday it has become entitled to 536.11 million shares in ANI, or 67.85 percent ofthe heavy engineer, which closed steady at A$1.25.

The steel group won control of ANI about a week and a half ago, and announced a board reshuffle at its new unit several days later.

Smorgon has said it would offer 51.19 million ordinary shares at a price of A$1.71 per share and 43.75 million converting preference shares at a price of A$2 per share.

The group's market capitalisation after listing was expected to be in excess of A$1 billion, making Smorgon one of Australia's largest listed industrial companies.

Smorgon's focus at ANI is the Comsteel, Steelmark-EagleGlobe and Palmer Tube Mills steel operations, aimed at creating Australia's second biggest steel company behind The Broken Hill Pty Co Ltd's steel division.

Chairman Graham Smorgon has said the family planned to retain majority ownership of the company and was not selling any shares under the offer.

After listing, Smorgon will have 650 million to 750 million ordinary and 80 million to 240 million convertible preference shares on issue,depending on acceptances for its ANI bid.

Underwriters and joint lead managers for the issue are Macquarie Equity Capital Markets Ltd and J.B. Were & Son.