Icahn Wants Motorola Board Seat
biz.yahoo.com
Friday April 13, 10:39 am ET
Investor Carl C. Icahn Sends Letter to Motorola Shareholders Asking for Board Seat
NEW YORK (AP) -- Billionaire investor Carl C. Icahn has asked cell phone maker Motorola Inc. shareholders to elect him to its board, according to a regulatory filing with the Securities and Exchange Commission Friday.
Icahn, 71, said he beneficially owns 68 million shares of Motorola stock.
In a Thursday letter to shareholders, Icahn, 71, said he is concerned with the earnings plunge in Motorola's cell phone unit as well as its sharp reduction in earnings guidance.
On March 21, Motorola announced first-quarter sales would fall more than $1 billion short of earlier projections and shook up its management, driving share price to a two-year low.
"Clearly our board members' top priority should be to hold management accountable for fixing Motorola's current operational problems -- and if I am elected to the Board I will do so," he wrote.
In the letter, Icahn, who had previously encouraged buybacks, said he believes stock repurchases and other transactions should wait until Motorola's operations are improved.
Icahn added that he will reduce his membership on the boards of public companies to less than six if he is elected, in order to devote more time to Motorola.
Icahn previously said he would support Motorola's other 10 board nominees and that he would replace current board member John A. White unless the board chose to increase its size.
Motorola urged shareholders not to support Icahn or his affiliates in its proxy with the Securities and Exchange Commission earlier this month. The 2007 shareholder meeting is set for May 7. |
