UTStarcom sells cell-phone distribution unit

Tag : Cell Phone Boxes
ALAMEDA, Calif. -
UTStarcom Inc. said Monday it has completed its sale of the telecommunicationscompany's cell-phone distribution division to a unit of AIGInvestments for about $240 million.
In a regulatory filing Monday, UTStarcom (nasdaq: UTSI - news - people ) said $24.3 million of the price is subject to escrow, and theamount may be subject to an adjustment. UTStarcom could also bepaid up to $50 million more in 2011 based on the earnings of thedivision.
Philip Christopher, the former president of the personalcommunications division, will be paid $1.5 million for terminationof his employment related to the sale.
UTStarcom will also pay a $52,221 life insurance premium forChristopher's benefit.
UTStarcom has been selling off units to focus on making Internet TVset-top boxes, particularly for the Chinese and Indian markets,where cable TV service is less common than in the U.S.
Shares of UTStarcom stock rose 47 cents, or 10.22 percent, to $5.07Monday, before dropping 18 cents, or 3.55 percent, to $4.89 inafter-hours trading.

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