Baltimore leaves encryption for green fuel

Baltimore has re-invented itself in a bid to thwart a rebel shareholder.

It now plans to set itself up as an adviser to help companies cut their fuel bills and switch to a greener, energy-efficient mix. And it has hired a new board of high-priced help from the likes of BP to do so.

The move is the result of six months' deliberation on how to realise the best value for shareholders from its assets. Its 40,000-odd shareholders are all minor holders, except Acquisitor Holdings, which has an 11.5 per cent stake and aims to gain control of the company.

Once a high-flyer valued at around £5bn, the company sold the last of its network security interests late last year. Its assets now are £25m in cash and whatever tax advantages it can gain out of its tremendous losses.

A Baltimore spokesman declined to put a value for these losses to the company or to any potential purchaser, however.

Bermuda-based Acquisitor, which describes itself as having a track record of successfully acquiring, and disposing of, undervalued companies, started building its stake in Baltimore late last year. It also set up a website for dissident shareholders and a few days ago forced an extraordinary general meeting on the company.

Baltimore was widely expected to either go into voluntary liquidation and return the £25m to the shareholders or to make some sort of reverse takeover. The move to bring in a new board led by David Weaver, former head of BP's gas, power and renewables operations, caught observers and Acquisitor by surprise.

Acquisitor said that it was astounded by the move and that it was preparing a statement. Although promised hourly, the statement was not forthcoming.

Baltimore expects to make an acquisition shortly to use as a base for its new operations. The company also expects to change its name. The EGM is scheduled for early May.