Baltimore Technology's largest shareholder, Acquisitor, has said it will vote against the company's plans to return cash to shareholders at the annual meeting in early July, writes Jane O'Sullivan, Markets Correspondent.

The opposition of Bermuda-based Acquisitor, which now controls around 26 per cent of Baltimore, means the resolution cannot be passed as it needs 75 per cent approval to be carried.

Acquisitor said it did not believe that the proposal was in the best interests of Baltimore shareholders.

"If Baltimore plans to distribute through a special dividend as much as £10 million [€15 million], Acquisitor Holdings is concerned that Baltimore will not be left with sufficient funds to meet its obligations and at the same time position itself for growth," it said.

A Baltimore spokesman said yesterday that the company had noted Acquisitor's statement and would review all its options going forward.

Acquisitor also plans to vote against a number of other resolutions at the annual meeting in London on July 5th, although these require just a simple majority to be approved.

It will vote against the motion to receive and adopt the accounts for the year ended December 31st, citing Baltimore's failure to provide it with answers to a number of questions it has asked. It also intends to oppose the company's resolution to seek authorisation for market purchases of its own shares.

Finally, Acquisitor, which is attempting to oust the three remaining members of the Baltimore board, including executive chairman Mr Bijan Khezri, and replace them with its own nominees, said it would vote against the resolution to approve the directors' remuneration for last year.

Baltimore has more than 5,000 Irish shareholders, most of whom own small stakes in the company.

The current Football Association of Ireland (FAI) chief executive, Mr Fran Rooney, founded the company in the 1990s, when the firm specialised in internet security.

The company was listed on the London Stock Exchange and, for a brief period in 2000, formed part of the FTSE Top 100 index. Its shares were quoted at more than £15 (€22.53), before falling victim to the collapse in the technology bubble.

Over the past year, Baltimore has sold its remaining businesses in the technology sector, leaving it with assets of €37 million in cash. Earlier this year, chairman Mr Bijan Khezri and recently appointed chief executive Mr David Weaver announced that the company intended to use this money to enter the alternative energy sector, a move blocked by Acquisitor.

Instead, Baltimore decided to return cash to its shareholders but this now looks set to be thwarted by Acquisitor as well.