BUS maker Optare has raised £2.2million through a share placing, it has announced.

The Blackburn firm, currently the subject of a possible buy-out, has issued nearly 40million shares at 6p each on the Alternative Investment Market.

It also plans to issue share options which could raise a further £2.2million.

The announcement comes after Optare signed a deal with Durham County Council to supply its fully electric city bus to the authority.

Chairman John Fickling said: “This is a real measure of the support our investors have for our Eco Drive strategy of greener buses.”