Baltimore Technologies yesterday took itself off the market, citing a lack of realistic offers for the software company.

The firm, which employs about 100 staff in the Republic, said it would concentrate on supporting customers of its main authentication business. Separate negotiations regarding the sale of certain managed service-related offerings would continue, Baltimore said in a statement.

Shares in the former high- flying company, which develops public key infrastructure technology, fell 13 per cent to 36.5p sterling after the announcement.

Analysts said last night the announcement left the firm in a difficult position and could raise the prospect of a future management buyout (MBO) to conserve cash.

None of the firm's executive team would return calls last night but a Baltimore spokesman said the company was not considering an MBO.

In a statement, Baltimore chief executive Mr Bijan Khezri said the firm's cash balance, as well as expected future inflows, would ensure that Baltimore made the development, support and maintenance of its authentication business a priority.

"The software industry continues to represent significant potential for consolidation worldwide... we will continue carefully monitoring the situation and pursue the disposal of managed service-related offerings," he said.

Mr Barry Dixon, analyst with Davy Stockbrokers, said the fact the firm could not find a buyer was disappointing. There was little of value in its related managed service unit to sell, he said.

He said there was a possibility that Baltimore might consider an MBO.

Analysts agreed the termination of the sale process was a blow to Baltimore's long-term future but said it should be able to survive, at least in the short term.

The company said it had £14.7 million sterling (€21 million) in cash reserves at the end of last month, a figure that does not include the £8.3 million secured in last week's sale of its SelectAccess subsidiary.