Troubled Calluna looks for partners

Struggling miniature hard disk manufacturer Calluna saw its share value tumble after it revealed it was unlikely to meet end-of-year profit forecasts and was seriously short of cash.

Struggling miniature hard disk manufacturer Calluna saw its share value tumble after it revealed it was unlikely to meet end-of-year profit forecasts and was seriously short of cash.

The vendor is now looking for a partnership or buyer after problems with components supplied to it hit sales of its Type II drives. Although the problem has been resolved, it has caused Calluna severe financial difficulties.

In a statement, Calluna said it is "urgently considering a range of options, including a partnership or sale".

Shares in Calluna had risen following speculation that the firm was about to be bought, but fell 42 per cent following the announcement.