Top Exec Quits UTStarcom

Shares fall as the company says it plans to stay with its plan.
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UTStarcom (UTSI) - Get Report shares swooned after its China chief splits and the company stood pat on its strategy.

The Alameda, Calif., tech shop says Ying Wu, its China CEO, has left the company and has been replaced in the interim by chief executive Hong Lu. The company says it has also concluded its review of strategic alternatives and decided to make no changes to the current plan.

"After careful consideration of a number of short- and long-term alternatives, we have determined that our best course of action is to move forward with the company as it exists today," Chairman Tom Toy said in a press release Friday.

In October, the company hired Merrill Lynch to help find a buyer. In November, the company announced it was reviewing its books for possible backdated stock options.

UTStarcom shares were falling 91 cents, or 12%, to $6.40.