Acquisitor Holdings, a Bermuda-based firm that specialises in acquiring stakes in undervalued firms and seeking ways to extract value from its investment, has increased its shareholding in former software firm Baltimore Technologies.

Baltimore said yesterday that Acquisitor had bought a further 110,000 shares in the company on December 10th, increasing its stake in the firm to 8.18 per cent.

The latest purchase follows months of stakebuilding in Baltimore and has intensified speculation about Acquisitor's intentions towards Baltimore, which recently completed the disposal of all its operating divisions.

Acquisitor, which is listed on the Alternative Investment Market in London, generates capital growth through the acquisition of holdings in publicly traded companies that, in the opinion of the firm's board, are adjudged to be undervalued.

The company typically buys into firms and uses public market techniques to assist in realising value from its holding. This often takes the form of attracting private equity buyers to take a look at the firm and using its influence on the board to push for a sale.

Acquisitor has previously taken holdings, and subsequently sold its interest, in an array of sectors including construction, manufacturing, food and beverage, precision engineering and satellite communications.

The stakebuilding in Baltimore comes at a sensitive time for its management, which is currently examining whether it should liquidate the firm, become involved in a reverse takeover or make an acquisition.

A Baltimore spokesman said the firm's board had approached Acquisitor to find out if it would be interested in a meeting to discuss its intentions. However, Acquisitor has declined to meet Baltimore representatives.