Icahn wins seat on Motorola board
Motorola gives it up
The Motorola board of directors has agreed to give two seats to nominees of activist investor Carl Icahn in exchange for an end to all legal battles between the two.
Icahn missed out on winning a board seat in May 2007 but has continued his critical campaign against the company's management. Motorola has already accepted Icahn's main demand - that it sell off its mobile business. The company said in February that its handset division, which lost $1.2bn in 2007, was up for sale.
Motorola said that Keith Meister, MD of Icahn investment funds, and William R Hambrecht will be nominated for election to the board of directors at its annual meeting next month. Meister gets a seat from immediate effect. In exchange Icahn agrees to support all other Motorola nominees.
Motorola has agreed to consult with Icahn about selling off its handset division and on finding a replacement for ex-CEO Ed Zander.
Icahn Associates now owns 6.4 per cent of Motorola shares.
Motorola seems to have stumbled since the launch of its RAZR handsets. But finding a willing buyer for a loss-making handset division could still be a struggle.
The full Motorola statement is here.®