A new cloud of uncertainty hangs over Dutch ERP vendor Baan Company NV after revelations that its biggest investor has been forced to sell 8% of the company’s equity to reduce debts. Vanenburg Ventures, which was set up by Baan’s founders John and Paul Baan, reduced its stake from 38% to 30%. The shares had been used as collateral for loans. But with the collapse in the company’s share price – down 80% from the year’s high in April – Vanenburg said the lenders had sold a number of those pledged shares to reduce the balance of the loans. Vanenburg would not reveal the extent of its debts but said it would take action to prevent further sales of Baan shares. These measures would include discontinuing non-strategic activities and spinning off companies to attract other investors. Vanenburg has been a continuing source of embarrassment to Baan. It has considerable investments in the major distributor of Baan software and also held stakes in Baan resellers. Following pressure from financial institutions, it promised earlier this year to divest its holdings in these sensitive areas (CI No 3,446). With Baan’s share price is at $11.25, down from a year’s high of $55.50.
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