Shares in Baltimore Technologies dived today after it announced that it had turned its back on a bid approach by Chantilley Corporation, saying the proposed all-paper deal would not add any value.
By the close of business on the FTSE, Baltimore shares were down over 17% to stand at 28 pence sterling.
The troubled internet security firm said Chantilley, a small unlisted UK technology company, had made no offer for Baltimore. The company added that it had declined to meet Chantilley and did not plan any further talks.
Chantilley has also indicated that it would withdraw its reverse takeover approach, Baltimore said.
'The basis of the approach made by Chantilley is that its advanced encryption and key management technology, when added to Baltimore's customer base and commercial skills, would create a stronger combined business,' Baltimore said in a statement this morning.
'Having considered the approach, the board of Baltimore believes that this technology will not enhance the company's product offering to customers,' the statement concluded. Baltimore also said that the Chantilley offer would not bring any cash to the table.
Shares in Baltimore Technologies had surged by 10% yesterday, despite a denial that it was in takeover talks with the world's largest software maker, Computer Associates. The company said that it was not in talks with any other prospective bidders and that it had faith in its own technology.
Baltimore Chief Executive Fran Rooney resigned last week after months of poor trading figures and a falling share price.
Internet technology analysts say that Baltimore, whose Internet security software is used by some of the world's biggest credit card companies, needs a more powerful suitor.
