The £16 million bid battle for stockbroker Blue Oar Securities turned nasty today, as it accused two of the directors of hostile bidder Evolve Capital of being involved in no fewer than 28 companies that have gone bust.

Blue Oar said Edward Vandyk, chairman of Evolve and original founder of Blue Oar, and Oliver Vaughan, a director of Evolve and director of Blue Oar until a fortnight ago, had between them been directors of a total of 28 companies which have needed administrative receivership or which have been subject to insolvency proceedings.

The broker also said: "Edward Vandyk admits he lacks the skills or contacts to manage Blue Oar."

Describing the bid, Gavin Casey, chairman of Blue Oar, said: "This is an unwelcome distraction and a waste of shareholder money.

"It is transparent attempt to get Blue Oar shares on the cheap.

"A hostile offer for what is a people business is not in the best interest of shareholders."

Unusually, the offer rejection document contains almost three pages of anonymous testimony from Blue Oar employees supporting their chief executive Andrew Monk and attacking Vandyk's plans.

Blue Oar also said that it was "actively exploring a number of strategic options", none of which would cost it cash, and said that it could be in a position to announce a deal in the new year.

It also pointed out that Evolve is only offering its own shares for the takeover which values Blue Oar shares at just 7.2p each, or a massive 24% discount to the market price of 9.75p.