Baltimore to fight predator

FORMER stock market star Baltimore Technologies will hit back against a predatory shareholder this week by unveiling its future strategy, which is believed to include a major acquisition.

Baltimore was once a high-flying internet security company worth more than £5bn and with a place in the FTSE 100 index, but a spectacular fall from grace has left it valued at just £22.2m.

Baltimore attracted many small investors at the height of its stock market success. About 45,000 own almost 90% of the shares.

Investment company Acquisitor Holdings, which is the biggest investor with 11.4%, blames poor management by the directors, including executive chairman Bijan Khezri, for the collapse.

Acquisitor, which is agitating for change, last week called for a meeting to replace the directors with its own deputy chairman, Duncan Soukup, as chief executive and accountant David Buchler as chairman.

It has set up a website, www.baltimoreaction.co.uk, calling for the support of small investors.

Acquisitor is attracted by Baltimore's cash pile, which is thought to be between £25m and £30m, and its full market listing. After selling its former businesses, Baltimore is seen as a shell company, though Acquisitor, which has a history of creating value, has yet to reveal its plans.

It will release a statement to the stock market tomorrow questioning the performance of Baltimore's management.

Baltimore will release its annual results on Wednesday, but investors will be more concerned with its strategy and the size of its cash pile. The board is believed to have identified potential acquisitions, and its plan is likely to be put to investors alongside the Acquisitor vote.