Riverdeep chief executive Mr Barry O'Callaghan is close to winning his battle to take private the educational software group.

Hertal, the management buyout (MBO) vehicle he put together for the deal, announced yesterday that it had secured acceptances from shareholders controlling 58.8 per cent of the company's shares not controlled by Mr O'Callaghan and others connected with the bid.

To succeed, the MBO needs to get the support of 80 per cent of shareholders not connected with the Hertal deal. Parties tied to Hertal, including company founder Mr Pat McDonagh, control 25.2 per cent of the shares.

Hertal welcomed the level of acceptances by the first closing date, which came just two working days after the end of a lock-in period during which Mr O'Callaghan and Mr McDonagh agreed to sell their shares to anyone offering 10 per cent more than their offer of $1.51 per share. It has now set a second closing date of March 10th.

"I think it's fair to say - and I think I'm allowed to say this - that where the first level has come in relative to our expectations, it is much stronger than anticipated. We're three-quarters of the way there," he said.

Analysts said the level of acceptances was higher than expected given the short space of time available. It was assumed most shareholders would hold off accepting the Hertal offer until it became clear whether a rival bid would emerge.

"We could not have got to 60 per cent if most of the big holders [of stock\] had not backed us," said Mr O'Callaghan.