Management's €2.70 per share offer for Alphyra took a step closer to success last night when it emerged that investors holding 60.7 per cent of the company had agreed to accept the offer - a big increase on the 38.5 per cent level of acceptances received just a week ago.

The failure of a rival bid to emerge and the announcement by Benchmark, the venture capital company backing the management buyout (MBO), that its offer was final and would not be revised or increased may have prompted many shareholders who had been waiting in the wings to see what would happen to accept the offer.

The offer, which needs 80 per cent acceptances before it can go ahead, has been extended for a further week, until March 5th.

Sources close to Rendina, the MBO vehicle, said last night they were very pleased with the level of acceptances received by yesterday's closing date.

"It shows the majority of shareholders want it to happen," one source said, adding there had been a good response from private and institutional investors.

The 60.7 per cent figure includes the 5.8 per cent of the company held by chief executive Mr John Nagle and nine other members of management, all of whom are involved in the bid. It also reflects shares acquired in the market by Benchmark, which held 17.3 per cent of Alphyra as of last night.

Alphyra shares were unchanged at €2.50 last night. The Rendina announcement on acceptances was not made until after the stock market had closed.