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Technology Stocks : Motorola (MOT) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wolf who wrote (3334)	9/25/2010 7:48:54 PM
From: Sr K	1 Recommendation Respond to of 3436

Motorola Plans Reverse Stock Split as Breakup Nears (Update4) By Hugo Miller Sept. 24 (Bloomberg) -- Motorola Inc., the communications- equipment maker that’s breaking in two, plans a reverse stock split to help increase the shares’ price as part of the scheduled spinoff of its mobile-phone business. Investors would get one share for every three to seven they own, with the exact ratio to be decided later by the board. The company will hold a special stockholder meeting on Nov. 29 to seek approval for the move, according to a statement today. The reverse split would happen immediately after the spinoff of the handset and set-top box units, scheduled for the first quarter. The reverse split may help Motorola’s remaining business, including the two-way radio and bar-code scanner units, to appeal to those investors who avoid stocks that are trading at less than $5, said Tero Kuittinen, an analyst at MKM Partners LP. “There is a school of thought that says it has a psychological impact to make a company’s share price more attractive,” said Kuittinen, who is based in Greenwich, Connecticut, and has a “neutral” rating on the stock. “There is a stigma attached to a company with a share price under $5 and Motorola isn’t that far from that, so it gives them a margin of safety.” Motorola said the reverse split is likely to improve the marketability and liquidity of the shares of the part that the company will keep after the spinoff, which will be called Motorola Solutions. The move would also include a corresponding decrease in the number of shares that Motorola Solutions is authorized to issue. Motorola, based in Schaumburg, Illinois, rose 30 cents, or 3.6 percent, to $8.68 at 4:15 p.m. in New York Stock Exchange composite trading. The stock has gained 12 percent this year. To contact the reporter on this story: Hugo Miller in Toronto at hugomiller@bloomberg.net To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net Last Updated: September 24, 2010 16:23 EDT noir.bloomberg.com