Printed from http://www.electronista.com

Motorola faces suit from famous investor

updated 03:10 pm EDT, Mon March 24, 2008

Carl Icahn vs. Motorola

Motorola is being deliberately guarded about the prospects of its cellphone business, a lawsuit from a prominent investor alleges. Carl Icahn has been unhappy with the declining fortunes of the company, and for a year has proposed the installation of four new directors; Motorola has fought back, however, and is claimed by Icahn to have resisted attempts at accessing useful records. The lawsuit, filed in a Delaware court, looks to obtain those records, to "ascertain what the board could have done" to persuade shareholders that financial comments were right and would not give "an inaccurate perspective on the prospects for the mobile devices business."

Motorola defends itself, saying that Icahn was offered information access, but that he rejected it along with a standard confidentiality agreement.

Icahn contends Motorola's stock is deeply undervalued, and that selling or otherwise spinning off the cellphone division would improve profits for both himself and other shareholders. The value of the company could jump by as much as $20 billion, he says.

Falling sales have triggered a number of labor crises at Motorola. A recent head of the cellphone division, Stu Reed, left after only eight months, while other members of management have been forced out. The company's UK design team has been threatened with firings of as much as half of its people, which may reflect unhappiness with the lack of a phone as successful as the original RAZR. [via The Wall Street Journal]



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

Prong PWR Case

Ultimately there's one thing we all want from smartphone accessories; we want options. When it comes to keeping our iPhone charged, we ...

iHome iBT74 Color Changing Bluetooth Speaker

There's no reason why your tech can't look good while doing what it was designed to do. That's the reason that sports cars look good a ...

Logitech Gaming Daedalus Prime Mouse

Logitech Gaming continues to expand upon its peripherals line, with each one looking to fit neatly into a breadth of gaming needs. Bui ...

Advertisement

toggle

Most Commented