The board of dotcom star turned bombed-out cash shell Baltimore Technologies yesterday fought for their jobs in the face of yet another vote for their removal by rebel shareholder Acquisitor.
While the two sides slogged it out at an increasingly acrimonious annual meeting in London's West End, shares in Baltimore fell 10% after the firm admitted it faces a lawsuit from rival Earthport claiming £4.5m of its precious cash.
Baltimore, which has about £22.7m in the bank, has already promised to return £10m to shareholders after management was forced to ditch plans to turn it into a green energy firm because of Acquisitor's objections. After Baltimore has paid off its creditors, the Earthport claim could leave it several million pounds in the red.
At a three-hour meeting yesterday - at which Acquisitor pressed for the removal of the board in favour of its own people - Baltimore's chairman, Bijan Khezri, told shareholders to be cautious about the size of the Earthport claim. In order to negotiate an out of court settlement, "it is not very unusual for someone who thinks they have a claim to make it as big as possible", he told the meeting of less than 100 investors.
Earthport's claim relates to agreements in March 2001 under which Baltimore was to supply its internet security software and services to the electronic payments company. Earthport maintains that Baltimore broke the contract.
Baltimore's annual meeting - which was followed by an extraordinary meeting also requested by Acquisitor to remove the board - was heated, with shareholders venting their frustration at the board and Acquisitor, which holds about 26% of the business.
One shareholder blasted Acquisitor for not having any plan for the business if it achieves control. "You are just telling us you'd like us for breakfast, lunch and dinner," he said. Acquisitor's deputy chairman, Duncan Soukup, hit back, saying, "you've already been had for breakfast, lunch and dinner" by the current board.
After repeated interruptions from the floor by Mr Soukup, Mr Khezri snapped back: "You're saying you do not want to get involved in a pissing match ... the reality is you have been creating it." Mr Soukup replied that he would not be taking up a proffered place as a non-executive director with Baltimore because "I would rather stick pins in my eyes".
The results of the votes taken at both meetings to oust the Baltimore board will be announced today. With counting still going on last night, the vote appeared finely balanced.
