Rackspace says not to sell itself; shares fall

(Reuters) - Cloud management services provider Rackspace Hosting Inc said it would not sell itself, sending its shares down 16.5 percent in after-market trading.

The company also named President Taylor Rhodes as chief executive, replacing Graham Weston, who co-founded Rackspace. Weston will become non-executive chairman.

Rackspace, which has been facing competition from companies such as Amazon.com Inc and Google Inc , started a strategic alternatives review in May after it received buyout interests from multiple parties.

Rackspace shares closed at $39.34 on Tuesday on the New York Stock Exchange.

(Reporting by Anya George Tharakan in Bangalore; Editing by Don Sebastian)