UTStarcom announced that it is exploring a variety of strategic alternatives to enhance stockholder value and had engaged Merrill Lynch as an advisor.
“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 Chief Executive Officer of UTStarcom, Inc. “We believe the engagement of Merrill Lynch will help us to carefully examine a range of short and long-term alternatives.”
In conjunction with this initiative, the Board has asked Ying Wu, CEO of UTStarcom China to oversee this effort, under the direction of the special committee. Given this priority, Mr. Wu will not assume the title of Global CEO on January 1, 2007, as was previously announced.
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