The announcement signals an end to the controlled sale process initiated by the struggling IT security firm in May.

In a statement, the firm says: "Whilst there have been offers for the whole of the company's share capital the board does not believe that pursuing those offers would allow maximising the overall return to shareholders."

Baltimore last week sold off its Select Access single sign-on business to HP for £8.3 million.

Negotiations regarding the disposal of certain managed service related offerings will continue, says Baltimore CEO Bijan Khezri, as the company hones its focus on the authentication business.

"The software industry continues to represent a significant potential for consolidation worldwide," he says. "As the world's leading PKI-based authentication vendor for high-end applications in finance and government, we will continue carefully monitoring the situation and pursue negotiations regarding the disposal of managed service related offerings."

On an unaudited management accounts basis, Baltimore had £14.47 million cash at bank on 30 June 2003. This balance excludes the £8.3 million due in respect of the Select Access disposal and £2-3 million expected in the next 6 months from earlier divestments. In effect, the half-year cash balance of £14.47 million represents a net reduction of only £3.42m for the first six months of 2003. The business remains debt free other than a £300k mortgage.

Says Khezri: "Today's cash balance as well as the expected future inflows will ensure that we continue making the development, support and maintenance of our authentication business a priority."