Hargreaves, who joined the board of ITM in February 2004, paid 237p each for the shares. The purchase was his first since September last year when he picked up 200,000 at 89p.

The shares have fallen back from their best levels of 351p reached earlier this month in reaction to the wider market retreat.

In April, ITM said it noted the recent press speculation and the rise in its share price, confirming that it was in discussions to undertake a fund raising.

A further announcement will be made in due course, it said.

Top Director Buys

ITM Power (ITM) Director name: Mr Peter Hargreaves Amount purchased: 100,000 @ 237.00p Value: £237,000

European Islamic Investment Bank (EIIB) Director name: Mr Shabir A Randeree Amount purchased: 524,783 @ 25.00p Value: £131,196

Zurich Fin. (ZURN) Director name: Mr Thomas K Escher Amount purchased: 1,000 @ 11,995.10p Value: £119,951

Bank Of America (NYSE: BAC - news) (BAC) Director name: Mr Jackie M Ward Amount purchased: 1,819 @ $48.40 Value: $88,040

BG Group (LSE: BG.L - news - msgs) (BG.) Director name: Sir Robert Wilson Amount purchased: 10,000 @ 655.91p Value: £65,591

Investec (INVP) Director name: Mr David J Prosser Amount purchased: 2,000 @ 2,699.00p Value: £53,980

Hays (LSE: HAS.L - news - msgs) (HAS) Director name: Mr Paul Venables Amount purchased: 29,585 @ 161.25p Value: £47,706

National Grid (NG.) Director name: Sir John Parker Amount purchased: 8,000 @ 572.32p Value: £45,786

Iomart (LSE: IOM.L - news) (IOM) Director name: Mr Fred Shedden Amount purchased: 50,000 @ 76.00p Value: £38,000

RC Group (RCG) Director name: Dr Raymond Chu Amount purchased: 70,000 @ 52.00p Value: £36,400

Top Director Sells

Serica Energy (SQZ) Director name: Mr Christopher David Atkinson Amount sold: 650,000 @ 93.00p Value: £604,500

Brit Insurance (BRE) Director name: Mr Neil Eckert Amount sold: 100,000 @ 280.00p Value: £280,000

Rolls-Royce (RR.) Director name: Mr Colin Smith Amount sold: 56,364 @ 407.75p Value: £229,824

Brit Insurance (BRE) Director name: Mr Neil Eckert Amount sold: 50,000 @ 280.00p Value: £140,000

Brit Insurance (BRE) Director name: Mr Neil Eckert Amount sold: 25,000 @ 266.00p Value: £66,500

Waterman Group (LSE: WTM.L - news) (WTM) Director name: Mr N J Taylor Amount sold: 7,800 @ 153.00p Value: £11,934