electronics group, fell 42 percent on the London Stock Exchange on Monday.

This drop accompanied warnings of a substantial full year loss and sweeping job cuts.

Allan Wong, Hong Kong-based VTech's chairman, said a $133 million exceptional charge would be incurred due to restructuring of a unit bought last year from Lucent.

The company expects the business plan for changing Lucent assets will result in 4,500 job losses. VTech paid $121 million for the Lucent unit in March last year and then launched a $170 million lawsuit in January this year, claiming Lucent failed to disclose the condition of the business before the sale.