Juniper Networks and Openwave Systems have said they have been contacted by regulators investigating alleged abuse of share options back in the heady days of dotcom lunacy.

Juniper said it had been contacted by the US Attorney for Brooklyn asking for information about granting of stock options. Mobile software firm Openwave confirmed it had received a similar letter from the Securities and Exchange Commission (SEC).

CNET Networks has formed a committee to look at how it granted share options, but has not said if it is under investigation.

Chip kit maker KLA-Tencor and chip designer Trident Microsystems join those companies that have been contacted by regulators seeking more information. RSA Security is also under SEC investigation.

Merrill Lynch yesterday warned its investors that the scandal may well spread. The firm investigated semiconductor companies and found shares were consistently doing better in the 20 days after options were granted.

On a day of big falls on exchanges worldwide, Nasdaq lost one per cent while Openwave fell 4.5 per cent and CNET almost seven per cent.

More from Reuters here and on the New York Times here. ®

Related stories

• Former Juniper attorney faces SEC's wrath (29 August 2007)
• Microsoft joins options reformfest (1 August 2007)
• Brocade is just the beginning - warns SEC chief (21 July 2006)
• Trend Micro CEO in SEC probe (5 July 2006)
• RSA in three-way mating dance (29 June 2006)
• US share probe keeps growing (13 June 2006)
• McAfee hit by SEC investigation (12 June 2006)
• Symantec inherits $1bn tax bill from Veritas (18 April 2006)
• Tech bubble banker wins back his badge (29 March 2006)
• Merrill Lynch to cough $2.5m for missing emails (22 March 2006)
• Morgan Stanley offers $15m to make up for missing emails (22 February 2006)
• SGI warns that bankruptcy might be year-end option (8 February 2006)
• Court hands Gizmondo Europe to liquidators (7 February 2006)
• SEC goes formal with IBM probe (13 January 2006)