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Shares in Telit Communications surge as chief executive Oozi Cats departs

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Telit's value soared on the London Stock Exchange

Telit's value soared on the London Stock Exchange

Telit's value soared on the London Stock Exchange

Shares in Telit Communications have soared after the internet of things company announced the departure of chief executive Oozi Cats amid allegations he has connections to American fugitive Uzi Katz.

The AIM-listed group bounced back after a series of plunging falls on the London Stock Exchange, trading 11.5% higher during morning trading.

In a statement, Telit said Mr Cats had resigned with immediate effect and Yosi Fait would remain interim chief executive in charge of carrying out a review of the group's activities and cost base.

The company said: "It is a source of considerable anger to the board that the historical indictment against Oozi Cats was never disclosed to them or previous members of the board and that they have only been made aware of its existence through third parties.

"The board is now moving on from this difficult situation and will continue to deliver on its stated strategy under the interim leadership of Yosi Fait."

Telit Communications had hired international law firm CMS to investigate whether Mr Cats is the same man as Uzi Katz.

Uzi Katz and his wife Ruth V. Katz were accused of wire fraud in connection to a string of property deals across Boston in the 1990s.

The Rome-based company has now vowed to shore up the board by appointing three independent non-executive directors, including a new chairman.

Recruitment firm Korn Ferry is leading the search.

The update came as the company moved to quash reports calling into question its "financial condition".

Telit said: "The board confirms that there is no substance to the speculative and accusatory articles that have been published and that it stands behind the group's audited accounts to 31 December 2016 and the most recently published interim statement."

Telit's share price closed up nearly 6% on the London Stock Exchange.