Net security firm mum on Microsoft takeover rumor

[William Knowles <wk () C4I ORG>]

http://news.cnet.com/news/0-1003-200-2640454.html?tag=st.ne.1430735..ni

By Reuters
Special to CNET News.com
August 29, 2000, 5:50 a.m. PT

DUBLIN--Ireland-based Internet security firm Baltimore Technologies
declined to comment today on reports that U.S. computing giant
Microsoft is considering a takeover bid.

"The company does not comment on market rumors," a spokesman for
Baltimore said.

Shares in Baltimore rose as high as $11.29 (7.67 pounds) in London
today after reports that Internet bulletin boards were carrying
speculation of a potential offer.

Dealers said U.S. bulletin boards were reporting rumors that Microsoft
might be interested in bidding $17.69 a share for the firm.

By 3:38 a.m. PT, the stock had pared some of its gains, changing hands
in London at $10.98, up about 6 percent on the day. The shares rose as
high as $22.11 earlier this year.

Early this month, Baltimore reported higher-than-expected
second-quarter revenues of $24.03 million and a lower-than-expected
loss before interest, tax, depreciation and amortization of $6.49
million.

The company, expelled in June from the FTSE 100 share index after a
technology stocks sell-off slashed its capitalization, said it is well
on course to turning a profit.

Chief executive Fran Rooney said he is comfortable with analysts'
projections the group will post a profit in the first quarter of 2002.

Baltimore was formed by the 1999 merger of United States-based
Baltimore with Britain's Zergo Holdings to tap into the booming
e-security markets.

Analysts in London said a bid from Microsoft would make sense, giving
the software giant access to increased security features.


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