Juniper's Perk: A Shorter Lockup Period

SAN FRANCISCO -- Officers, directors and financial backers of Juniper Networks have won the right to sell a good chunk of their shares before the company's official lockup ends Dec. 1, according to filings made with the Securities and Exchange Commission.

Juniper wielded its clout with lead underwriter Goldman Sachs to trim its six-month lockup of stock, which started when the company filed its final prospectus on June 4. The IPO is set to go June 24. Juniper's executives and underwriters appear to be wagering that Wall Street's demand for shares of the network-equipment maker will be strong enough to weather early insider selling.

Often a warning of concerns among key shareholders, insider selling can also demonstrate strong market interest in an IPO, especially when underwriters allow it to happen before the traditional lockup ends. In Juniper's case, the move seems a bold gambit that interest in its stock will remain strong through at least November. Already, the 3-year-old upstart, known for luring away some of Cisco's (CSCO Quote) best software engineers to build a new network router, has drawn keen interest from the investor community.

"It's another sign of an overheated tech market," says one investment banker not involved in the underwriting but familiar with the deal. ...