Bookham scales back share placement plan

Bookham Technology, the optical components designer and manufacturer, yesterday scaled back a share placement by company executives and a cash call in response to criticism from investors.

Bookham Technology, the optical components designer and manufacturer, yesterday scaled back a share placement by company executives and a cash call in response to criticism from investors.

Existing Bookham shareholders will now sell 11.2 million shares worth £375m, down from the 15.4 million planned when the exercise was announced on 6 September. However, the placement of new shares will remain at nearly 3.1 million, raising net proceeds for the company of £99.3m. The shares in both transactions were priced at £33.50.

Andrew Rickman, chairman and chief executive of Bookham, said: "We are encouraged by the continued strong interest shown in Bookham. This transaction ...has enabled us to raise additional proceeds to fund the acceleration of our business plan."

Mr Rickman is to sell 1.217 million shares for nearly £41m. He and his wife retain a 23 per cent stake in Bookham worth more than £800m. Some investors had expressed disquiet at directors selling shares so soon after the lock-in expired.

Giorgio Anania, Bookham's president, sold stock worth £2.8m, while Stephen Cockrell, the finance director, unloaded shares valued at £2.3m.

Scientific Atlanta sold £60m in stock, while 3i, the UK venture capital group, realised £106m from reducing its stake.

However, US tech giants Intel and Cisco Systems did not participate in the sale and each company retains a 4.7 per cent stake in Bookham.

After an early rally to £36.50 yesterday, Bookham stock closed down 71p at £33.50. The company floated at £10 per share, raising £200m, in April.