We are up on the Icahn news!
John
Motorola says Icahn will seek board seat
Tue Jan 30, 2007 8:39am ET
UPDATE 1-Motorola says Icahn will seek board seat
NEW YORK, Jan 30 (Reuters) - Motorola Inc. (MOT.N: Quote, Profile , Research) said on Tuesday that billionaire investor Carl Icahn will be seeking a seat on its board of directors at the cell-phone maker's 2007 shareholders meeting.
Shares of Motorola, the world's second-largest mobile phone maker, rose more than 4 percent in premarket trading to $19.08 on the news.
Icahn is known for pressuring management to improve performance in companies he holds. In recent months, he has put a spotlight on such companies as home builder WCI Communities Inc. (WCI.N: Quote, Profile , Research), where he increased his holdings, and building materials maker Temple-Inland Inc. (TIN.N: Quote, Profile , Research) , saying he may urge management to divest one or more businesses there.
Motorola said it received a notice of his nomination from Icahn entities that "may be deemed to beneficially own" 33.529 million shares, or 1.39 percent of the company's outstanding shares.
The company said the notice contained no additional information on Icahn's intentions. Motorola has not set a date for the annual shareholders meeting.
Investor scrutiny of Motorola has grown as the company reported earlier this month a sharp drop in profit due to price cuts for its flagship Razr phone and tough competition in emerging markets. Motorola plans to cut 3,500 jobs to restore operating margins to the double-digit percentage levels.
Officials at Icahn's office were not immediately available for comment. |
