Baltimore Technologies has reported its biggest shareholder to the UK Financial Services Authority (FSA) as the battle for control of the company intensified yesterday.
The company announced that it was lodging a complaint with the FSA about Bermuda-based Acquisitor Holdings, which is seeking to take control of the company and its €37 million cash pile.
Acquisitor replied by threatening to sue Baltimore for defamation and revealing that it had increased its stake in the former internet security provider to 16 per cent, or eight million shares.
Baltimore said it had formally reported Acquisitor to the FSA for statements it made about the company from March 22nd to March 31st, while at the same time buying shares on the market.
Baltimore's statement said it was concerned that Acquisitor's behaviour could give a false or misleading impression of the former's value. This is an offence under English law.
However, Baltimore wrongly stated that Acquisitor had made a critical statement on March 30th, and that its share price had subsequently fallen from 45 pence sterling (67.8 cent) to 41 pence. In fact, the company's price rose that day to 45 pence from 42.5 pence.
Baltimore subsequently apologised for this statement and corrected it, but said it would continue to pursue its complaint.
Acquisitor responded by saying that its reputation had been damaged and it was seeking legal advice about the possibility of suing Baltimore for defamation.
The pair have been fighting over the remains of the one-time internet security specialist for the past two months.
The company has 5,000 Irish shareholders and its only substantial asset is €37 million in cash.
Its current board wants to move the company into the field of energy consultancy and broking. Acquisitor has pledged that it can enhance shareholder value, but has not said what its strategy would be.
Baltimore was based in this country and specialised in internet encryption products.
At its peak its shares were worth £15 sterling. Yesterday the traded at 45.25 pence.
