The battle for control of Baltimore Technologies intensified today with the former Internet star saying it had complained to the British financial watchdog about the behaviour of its biggest shareholder.
Bermuda-based Acquisitor Holdings in turn said it was considering suing Baltimore for defamation.
Baltimore, which is transforming itself into an energy consultancy business, said Bermuda-based Acquisitor Holdings released "inaccurate statements" about the former FTSE 100 company between March 22nd and March 31st which may have given the market a misleading impression of its value.
"The company is concerned that this behaviour may amount to market abuse," Baltimore said in a statement. It asked Britain's Financial Services Authority (FSA) to investigate.
Acquisitor, which holds 15.4 per cent of shares in the former Irish dotcom darling, said today Baltimore's accusation of market manipulation was based on inaccurate facts.
Baltimore said the corporate raider had made an announcement critical to the company on March 30th and then bought shares as the price fell to 41 pence from 45. The shares on that day rose to 45 pence from 42.5 pence.
"We note their unreserved apology [but] the damage has been done," an Acquisitor spokesman said. "This is a very, very serious allegation for an investment company."