Baltimore to leave stock market

THE stock market's doomed love affair with Baltimore Technologies will come to an end on Valentine's Day after shareholders in the former computer security company voted yesterday to delist it from the stock exchange.

But the story took a further twist as a third party walked on to the stage with news of a possible takeover bid.

Shareholders approved motions at an extraordinary general meeting to cease trading in the company's shares on the London stock exchange on February 14.

The vote brought to an end the company's troubled life in the public eye, which began with a high-profile flotation in 1998 and once saw it valued at more than €10 billion.

But its market value had evaporated to less then €10 million by the time of yesterday's vote, as it became one of the highest-profile casualties of the dotcom bubble and wrote off hundreds of millions of euro on overpriced acquisitions.

Shareholders also approved motions to tidy up the shareholder base in advance of the delisting.

The company will consolidate holdings by replacing 125 existing shares with one new share. More than 20,000 investors hold fewer than 125 shares, with stakes valued at less than £22 (€32). The company will buy these investors out and automatically send them a cheque, as long as their holdings are worth more than £3 (€4.36).

Investors who fall below this threshold will receive nothing.

But Baltimore's stock market departure may not be as quiet as first expected.

Earthport, an electronic payments company, signalled immediately after the EGM that it was considering a possible offer for the company and would approach the board "in the next few days."

Earthport is taking action against Baltimore over disputed contracts.

The company portrayed yesterday's votes as a cost-cutting exercise and said it continued to incur "significant costs" to administer its London listing and a special system for American shareholders.

Baltimore proceeded to wind down over the past two years by selling off or closing down its remaining businesses under former chief executive Bijan Khezri.

Mr Khezri built up a cash pile of €35m which he had hoped to use to reinvent the company as a clean energy business.

But his plans were brought to an end when investment company Acquisitor snapped up a 26% interest in Baltimore and used its voting muscle to oust him and his fellow directors.

Acquisitor installed a board of its own and has since tried to clear up the legal complications surrounding the company and realise value from its cash reserves.