Electronics and ceramics group Cookson today signalled it could sell one of its three operating divisions.

The former FTSE 100 company, which employs 16,000 people worldwide, said it was in the "early stages" of considering its options for the precious metals division, a major supplier to the jewellery and silversmith industries.

A report in the Sunday Times said a sale of the business, which employs about 2,300 people and has operations in Birmingham as well as the United States and continental Europe, could fetch around £100 million.

The move would represent further change for the group, which has battled back from a financial crisis 18 months ago. It had been £750 million in debt and required a £277 million cash call to investors to improve its position.

The strength of its recovery was highlighted with better-than-expected full-year profits last month, although Cookson did see profits within precious metals halve as it faced up to destocking among jewellery makers. The division's products are also used in coins and medals.

A sale by Cookson would leave it with two core operations, ceramics and electronics - both of which have reported improved trading in recent months.

The ceramics arm makes about 70% of its products for the steel industry while the electronics business is primarily involved in printed circuit boards.

The company, which employs about 2,000 people in the UK and began life 300 years ago as a Newcastle-based lead-maker, stressed that no decision had been taken regarding which option it will pursue.

It said in a brief statement: "The board of Cookson confirms that it is in the early stages of evaluating the various strategic options open to it in respect of its precious metals division."

Shares rose 1p to 42p following the announcement.

Monday March 15, 2004