Australian funds manager Balanced Equity Management says it will not budge on its rejection of the Macquarie Bank-led AU$11.1 billion (HK$72.07 billion) buyout of Qantas Airways, Australia's biggest airline.

"We are committed not to accept the bid," said Andrew Sisson, founder of the Melbourne-based firm which owns 4 percent of Qantas.

After share market gains and a 36 percent lift in the airline's profit estimates since August, the AU$5.45 a share cash offer was in the "ball park" of being a dollar too low, he said.

The buyout group, which includes TPG and Onex Corp, raised the bid once and eased its terms three times to try to win support for the deal. The offer, subject to the bidders getting 70 percent of the shares, will expire May 4 unless the group gains majority control of the airline this week, which would trigger a 14-day extension under Australian takeover law.

Sisson said Balanced Equity, along with other institutional and private investors, is "happy" for Qantas to remain a publicly traded company, or become controlled by the buyout group, which would let minority shareholders benefit as well.

Australia's benchmark stock index has risen 8.5 percent this year, buoyed by takeover speculation. Gains have made it dear for shareholders to reinvest proceeds they would get from the deal into other stocks, Sisson said.

Macquarie and its partners had acceptances from shareholders representing 27.8 percent of the airline. UBS Global Asset Management, which holds about 6 percent of Qantas, has not revealed its intentions.

Qantas, headed for its 14th straight year of profit growth, attracted the bid as fuel prices decline and global economic growth increases demand for air travel. Shares of Qantas have gained 22 percent since it said in November it had received a takeover approach.