The British Chantilley Corporation has stressed its bid for Baltimore Technologies is serious and is continuing to seek a meeting with the company to explain the benefits of its proposed deal.

Baltimore has told Chantilley it is not prepared to hold such a meeting until a firm proposal has been made. In its approach to Baltimore, Chantilley sought a meeting to discuss its proposals stating this "may or may not" lead to an offer for Baltimore.

Baltimore shares have traded heavily in the past couple of days on the possibility of an early bid. The shares surged in London early yesterday but by the end of trading were up by one penny to £31 sterling (#51). The shares were weaker in New York as investors became more sceptical about the Chantilley bid.

Some analyst suggest that even if this deal does not materialise, Chantilley's approach may flush out a bid from the likes of IBM or Microsoft which could be interested in integrating Baltimore's security technology into their e-mailing systems.

Speaking to The Irish Times yesterday, Chantilley finance director, Mr Mike Downey, emphasised the seriousness of its approach saying Baltimore "didn't appreciate" its importance. "This is too important for Baltimore not to meet us. It can only flail around until we meet," he said.

This is Chantilley's second approach to Baltimore, the first coming more than a year ago. Mr Downey said Chantilley was anxious to arrange a meeting between technical experts on both sides to present the benefits of its technology to Baltimore. It claims Baltimore would benefit from exclusive use of its patented technology which protects the transmission of data by internet, fax and phone. Mr Downey described Baltimore's current technology as "outdated".

Chantilley claims that by combining its technical advances with the commercial clout of Baltimore, it can create a company of immense strength. The key to its proposition is its powerful intellectual property, according to Mr Downey.

Chantilley is also preparing to make a public presentation to some of Baltimore's larger shareholders and analysts to explain its technological strengths in the coming weeks. Mr Downey said the timing of this presentation would depend on when it met with Baltimore.

Chantilley is a data security company based on Harley Street in London. It was set up eight years ago by mathematician Mr Bill Hawthorne. It is proposing a reverse takeover of Baltimore in an all-share deal which would give it a listing as a public company. Ironically, this is how Baltimore got a listing though its reverse takeover of the UK group Zergo.