Futurelink in £18m fundraising drive

Futurelink, the troubled Nasdaq-listed IT consultancy in which both Microsoft and Compaq have invested, is braving the stock markets to tap European and US investors for $15-25m (£10.6m-£17.7m) of funding.

Separately, the company is understood to have found a buyer for its European operations which should raise an additional $15m.

FutureLink's directors are in the process of presenting to institutional investors in London, Monaco, Zurich, Paris and Frankfurt. A spokesperson said reaction to the roadshow so far had been "overwhelming."

Ronald Bauer of the Bauer Partnership, the company's adviser in Europe, said FutureLink was also presenting to US investors. "There were a lot of people who bought into it, know the company and know the business and believe in the model," Mr Bauer said.

Shares in FutureLink have collapsed to current levels of around $1 each, valuing the business at around $10m. At the peak of the internet boom, the stock was trading at $251.

The company's management team was recently changed and Howard Taylor was brought in as chief executive six months ago to turn FutureLink around. He joined from Pequot Capital Management, a US venture capitalist that has invested almost $100m.