UPDATE 1-Qantas bid group edges closer to securing offer

(Adds detail, analyst comment)

By Michael Smith

SYDNEY, May 3 (Reuters) - A consortium bidding for Australia's Qantas Airways Ltd. (QAN.AX) said on Thursday its voting power in the carrier had increased to 27.78 percent as it edged closer to securing the world's largest airline takeover.

The consortium, including Macquarie Bank Ltd. MBL.AX and private equity firm Texas Pacific Group [TPG.UL], was still well short of the stake it needs by Friday for a successful bid, although some analysts were tipping a late rush of acceptances.

The consortium, Airline Partners Australia (APA), said its voting power had increased from 17.63 percent previously.

The number of shareholder acceptances for the bid rose to 32.96 percent from 25.94 percent as reported on Wednesday.

Shareholder acceptances include a facility where institutions can accept but retain the right to withdraw.

APA needs 70 percent of shareholder acceptances for its A$11 billion ($9.1 billion) bid to be successful. The offer closes at 7 p.m. (0900 GMT) on Friday but can be extended by two weeks if APA reaches more than 50 percent before then.

Some analysts said they expected shareholders to wait until the last minute before accepting.

"Like uni students, journalists and taxpayers, shareholders work to the deadline. Quite rationally, they seek to retain control of their shares for as long as they can," BBY analyst Fabian Babich said in a note to clients.

Other analysts said some shareholders might hold on to the stock in the hope they can be part of the buyout group if APA achieves 70 percent but does not move to a full takeover.

Hedge funds, which hold more than 40 percent of the stock, are expected to be key to pushing the offer over the line.

APA eased its offer conditions for Qantas last month after some key shareholders said the A$5.45 per share offer was too low. It previously wanted 90 percent of shareholder acceptances, a level at which it could compulsorily acquire the remaining stock.

The sale of the national icon, dubbed the Flying Kangaroo, has met with some political and strong union opposition but was backed by the Australian government as well as Qantas management.

The bid group also includes Allco Equity Partners AEQ.AX, Allco Finance Group AFG.AX and Canadian investment firm Onex Corp (OCX.TO).

Qantas shares were trading 0.6 percent firmer at A$5.37 at 0029 GMT.

((Reporting by Michael Smith, editing by Richard Pullin; michael.j.smith@reuters.com; Reuters Messaging: michael.j.smith@reuters.net; +61-2 9373-1821)) Keywords: QANTAS BID/

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