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Icahn Ups Ante in Motorola Battle

Billionaire investor sues for board documents in proxy fight

By Jim O'Neill,  Newser User

Posted Mar 25, 2008 6:43 AM CDT
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(Newser) – Billionaire Carl Icahn is turning up the heat on Motorola in his battle for more control, filing a lawsuit for access to board documents. The move follows his rejection of the company’s offer of two board seats—instead of the four he's seeking—and calling its refusal to seat one of his board candidates “intolerable and reprehensible,” reports the Wall Street Journal. Icahn is waging a proxy battle for the seats prior to Motorola’s May 5 shareholder meeting.

Icahn—who owns 6.3% of the company—wants Motorola to dump its handset division, which lost $1.2 billion last year and has seen market share plummet nearly 55%. Motorola  executives have talked about selling or spinning it off, but Icahn contends they're moving too slowly. Motorola’s value has fallen $37 billion since October 2006 when shares traded near $25. Shares closed yesterday at $9.69.

Chairman and CEO of Motorola, USA, Edward Zander pauses before speaking during a working session at the World Economic Forum in Davos, Switzerland, Saturday Jan. 26, 2008.
Chairman and CEO of Motorola, USA, Edward Zander pauses before speaking during a working session at the World Economic Forum in Davos, Switzerland, Saturday Jan. 26, 2008.   (AP Photo/Virginia Mayo)
Carl Icahn is seeking a court order to require Motorola to turn over documents about its mobile devices business and senior executives.
Carl Icahn is seeking a court order to require Motorola to turn over documents about its mobile devices business and senior executives.   (AP Photo/Mark Lennihan)
Carl Icahn is seeking a court order to require Motorola to turn over documents about its mobile devices business and senior executives.
Carl Icahn is seeking a court order to require Motorola to turn over documents about its mobile devices business and senior executives.   (AP Photo/Charles Rex Arbogast)
Motorola's new line of MOTORAZR2's are seen in this Sept. 12, 2007, file photo in New York. Less than two years past the most successful stretch in its 80-year history, Motorola Inc. is considering a sale or spinoff its now free-falling cell phone business.
Motorola's new line of MOTORAZR2's are seen in this Sept. 12, 2007, file photo in New York. Less than two years past the most successful stretch in its 80-year history, Motorola Inc. is considering a...   (AP Photo/Mark Lennihan , file)
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Motorola saw stock price jump when it weighed selling handset unit
Associated Press

Icahn committed to control of Motorola
BusinessWeek

 
Carl Icahn • Motorola • telecommunications • handsets • proxy battle • mobile devices

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