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Prabhu Quits as Tellabs CEO

Krish Prabhu has quit as CEO and president of Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA), and will step down before March 1, 2008.

In a press release issued this morning, 53-year-old Prabhu, who has been CEO since 2004, stated: "The Tellabs team has successfully broadened the product portfolio, established new relationships with large service providers, and made progress in repositioning the company… This is the right time for a new leader to begin the next chapter at Tellabs." (See Tellabs Names Prabhu as New CEO.)

There's speculation that Prabhu's past health problems -- he suffered a heart attack in 2005, a source at the company says -- may have been a factor in his decision. But the company declined to comment on the issue. "He didn't give a reason -- he gave a resignation and that was accepted by the board. This is his decision," said a spokesman.

The company has initiated an immediate search for a replacement.

Tellabs has had a disappointing year financially and is the subject of ongoing takeover speculation. See: The vendor also announced a new $600 million share buyback program that will use up about half of its cash reserves of $1.4 billion. That news had a positive impact on the company's share price initially, sending it up by more than 4 percent to $8.36 in early trading. But it soon hit reverse gear and by mid-morning was down by $0.28, nearly 3.5 percent, to $7.74, a 12-month low.

— Ray Le Maistre, International News Editor, Light Reading

bollocks187 12/5/2012 | 2:58:54 PM
re: Prabhu Quits as Tellabs CEO Then remove all the cronies he brought on board who have done nothing for tellabs.

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