OCTOBER 12, 2006 -- UTStarcom Inc. (search for UTStarcom) is "exploring a variety of strategic alternatives to enhance stockholder value." The board of directors has established a special committee of the board, which has retained Merrill Lynch & Co. as its financial adviser.
"Our board of directors and management team believe that the inherent value of the company and its opportunities are not reflected in our current share price," said Hong Lu, chairman and CEO of UTStarcom, Inc. "We believe the engagement of Merrill Lynch will help us to carefully examine a range of short- and long-term alternatives."
The Board has asked Ying Wu, CEO of UTStarcom China, to oversee this effort, under the direction of the special committee. As a result, Wu will not assume the title of Global CEO on January 1, 2007, as was previously announced. Wu will continue his current management responsibilities within the company while he is working with the special committee. The company's board and management team will work to ensure an appropriate leadership succession plan.
The company stressed there can be no assurance that any corporate action will result from its exploration of strategic alternatives.
UTStarcom Inc. provides IP-based, end-to-end "networking solutions," including FTTH gear, and international service and support. The company sells its broadband, wireless, and handset offerings to operators in both emerging and established telecommunications markets around the world.
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