Motorola to split into two companies
Motorola Inc said on Wednesday it would split into two publicly traded entities to separate its loss-making handset division from its other businesses. The move, which comes amid an intensifying proxy battle against activist investor Carl Icahn ahead of a May 5 annual meeting, could be a prelude for a joint venture for the cell phone business, analysts said.
Motorola, now ranked third in the global handset market, said the split would take the form of a tax-free distribution to its shareholders and expected it to be completed in 2009. The company has already started to look for a new head for its mobile devices business. “We expect this action to enhance recovery in mobile devices and accelerate efforts to attract a new leader,” Chief Executive Greg Brown said on a conference call with analysts.
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