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Motorola May Split Up Next Year, Wall Street Journal Speculates

6:15 am on December 14, 2007 | Category: Business, Corporate, Mobile Devices

American handset maker and telecom equipment giant, Motorola Inc., may consider breaking up its business units into several companies next year, according to a recent report in the Wall Street Journal.

Activist investor, Carl Icahn, who attempted to gain a seat on the Motorola board earlier this year, intends to push for such a break-up after the departure of his apparent arch-nemesis and the current CEO of Motorola, Ed Zander, at the end of this month.

“The point is that if the handset business was spun off, with over $20 billion in revenue in a growing industry, it is obviously worth a great deal,” Icahn said in an interview published yesterday, suggesting that the action could boost Motorola’s stock price.

Although Motorola has no formal agenda to restructure, Zander’s replacement, Greg Brown, is “seen as a deal maker and open to restructuring,” the WSJ report said.

Motorola’s new Chief Financial Officer, Tom Meredith, meanwhile, was recently quoted as saying that “circumstances sometimes require a change in action,” leading many investors to expect drastic changes in the post-Zander era.

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dis-info from wall street. wall street mafias are in panic mode. no, moto will not break up, icahn will.

Comment by znamia — December 16, 2007 #

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