Baltimore rebuffs unlikely bid

Former FTSE 100 high flyer Baltimore Technologies failed to hang on to a 30% jump in its share price on Friday after it became the subject of an unlikely takeover bid.

Baltimore stock still ended in positive territory, up a penny at 31p, after news that it had received a bid approach from Chantilley Corporation, a tiny British software company.

But Baltimore's board dismissed the viability of the offer, with analysts also sceptical about whether any deal with Chantilley would be possible.

Chantilley is a fraction of the size of Baltimore and is seen as being in an even weaker financial position than its target.

Botched bid

The markets were cheered by any acquisition interest for Baltimore, whose shares were trading at nearly 99% below their March 2000 peak at one point last week.

Baltimore has been hit hard by the general gloom pervading the high-tech sector, and has embarked on a series of shake-up attempts.

Chantilley's bid got off to an inauspicious start, when its offer letter was mistakenly sent to Baltimore's former office.

Computing industry websites received a Chantilley press release announcing the bid before Baltimore could confirm that it had received an approach.

The internet security business is suffering hard times

Baltimore denied that this constituted a formal takeover offer.

Instead, Chantilley had simply asked to meet to discuss an all-paper offer, Baltimore said.

Chantilley would have been an unlikely suitor.

Although the firm has previously talked of a flotation, which would value Chantilley at £600m, its published accounts show little cash in the bank, and no revenues for the past two years.

Even after its shattering share-price collapse, Baltimore is still valued at more than £130m.

It employs 1,200 staff, compared with Chantilley's 20.

The firms are at least in the same business: Chantilley specialises in data encryption security, and claims its technology is superior to Baltimore's.