updated 01:25 pm EDT, Mon April 7, 2008
Motorola, Icahn settle
Motorola and one of its prominent investors, Carl Icahn, have reached a settlement in their long-running conflict. Icahn has been a vocal critic of Motorola, complaining about the sliding profits of the company. For a year he has sought the installation of four new directors, and he more recently filed a lawsuit, demanding access to records connected to the finances of the mobile devices unit. Motorola initially contested this, claiming that Icahn was given the option of access but rejected it along with the terms provided.
Under the settlement, Icahn has agreed to drop the lawsuit, but Motorola will have to support two support of his nominees, Keith Meister and William Hambrecht; this effectively guarantees their election to the company's board of directors on May 5th, according to the Associated Press. Icahn will also advise on a new CEO and spinning off the mobile division, though he has promised not to using proxy voting during the May shareholders' meeting.