Baltimore Technologies' chief executive, Mr Fran Rooney, last night flatly denied speculation the publicly-quoted Irish Internet security firm had become a takeover target for software giant Microsoft.
He said there was no basis in the speculation which is understood to have begun on Internet bulletin boards on the Standard & Poor's website, www.spcomstock.com.
On foot of the market rumours, shares in Baltimore rose nearly 9 per cent on the London stock exchange to close at 770p, just down from a high of 777p over the day.
In late trading on the US Nasdaq the shares rose 17 per cent to $23.75, finally finishing $2 9/16 up at $22 7/8.
Baltimore initially declined to bid on the speculation, but later in the day, Mr Rooney denied the rumour.
"This isn't even a case of someone putting two and two together and getting six, this is more like zero plus zero. Our objective continues to be to build a global technology player based on our own momentum. We want to be the acquirer rather than the acquired," he told The Irish Times.
Baltimore's share price gained strongly heavily from the speculation. It has been recovering very slowly since its market high of around $45 prior to technology stocks falling out of favour.
Second quarter revenues published earlier this month, came in ahead of expectations at £16.3 million, with a lower than expected loss before interest, tax, depreciation and amortisation of £4.4 million.
Baltimore was expelled in June from the FTSE 100 share index after a technology stocks sell-off slashed its capitalisation. However, following the latest set of results, Mr Rooney said the company was now well on course to returning a profit.
