Wednesday, March 26, 2008
Motorola plans to spin off its unprofitable cellphone business to its shareholders, a move urged by Carl Icahn, who owns about 6% of the stock and is seeking to elect his nominees to the board. Last week the company offered him two seats on the board if he would drop his proxy fight. Icahn has brought suit in Delaware seeking access to corporate documents to determine if the board has breached its fiduciary duty to the shareholders. WSJ, Motorola to Split Off Handset Unit Amid Pressure from Activist Icahn.