Shanghai Securities News, 6/05/09
Industry sources have revealed that Chinese network solutions provider UTStarcom (Nasdaq: UTSI) will soon issue new shares to an outside investor. After rejecting offers from India's Tata Group, network equipment manufacturer Cisco and Chinese consumer electronics manufacturer TCL (000100.SZ), the company has reached a tentative agreement with a Chinese handset mogul. Through the new share issue, the unnamed investor will become the company's largest stockholder. The current largest shareholder, Japanese telecom and media corporation Softbank, holds an 11.45% stake. So far there is no official confirmation of these reports.
According to Chinese investigative business magazine Caijing, a source close to the deal said the two sides have more or less agreed on a share price and it only remains to reach a consensus on board seating, after which the agreement could be signed in the U.S. in the next several days.
Editor's Note: For more information on UTStarcom's restructuring plans, please see Rumor: UTStarcom to Restructure Businesses MD, 5/26/09.