toggle

AAPL Stock: 113.29 ( + 0.37 )

Printed from http://www.macnn.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 MacNN 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

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

Wren V5US Wireless Sound System

If you're a music fanatic, chances are you are, by extension, a bit fanatical about what you listen to your music on. If you're like ...

toggle

Most Commented