Bermuda-based Acquisitor Holdings has increased its stake in Baltimore Technologies to more than 20 per cent, giving it the power to block any other investor from taking over the London-listed company, whose sole asset is €37 million in cash.

In a statement to the market, Baltimore revealed that Acquisitor had bought 425,000 shares on Friday, bringing its holding in the company to 20.7 per cent. The move means that Acquisitor, already Baltimore's biggest shareholder, can potentially wield significant influence over the former technology company's future.

The takeover rules that apply both in the Republic and the UK mean that anyone wishing to buy a listed company must get acceptances from shareholders with 80 per cent of its equity before the offer becomes unconditional and succeeds. Acquisitor's stake means that it has the power to block any third-party bid for Baltimore.

Two weeks ago, Acquisitor called for an extraordinary general meeting (e.g.m.) of Baltimore shareholders to allow it to table a motion to sack the Baltimore board. This followed an e.g.m. earlier this month where it failed to get the necessary support to remove the directors.

Baltimore has more than 5,000 Irish shareholders, most of whom own small stakes in the company. Current Football Association of Ireland (FAI) chief executive Mr Fran Rooney founded the company in the 1990s, when it specialised in internet security.

The company was listed on the London Stock Exchange and, for a brief period in 2000, formed part of the FTSE Top 100 index. Its shares were quoted at more than £15 (€22.53), before falling victim to the collapse in the technology bubble.

Over the past year, Baltimore sold its remaining businesses in the technology sector, leaving it with assets of €37 million in cash. Earlier this year, chairman Mr Bijan Khezri and recently appointed chief executive Mr David Weaver announced that the company intended to use this money to enter the alternative energy sector.