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Motorola Spinning Out Handset Division

DATE: 2008-03-26

By Reuters

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Motorola said it will separate mobile devices from its network equipment, enterprise and public safety businesses.

NEW YORK (Reuters) - Motorola Inc said on Wednesday it would split into two publicly traded entities to separate its loss-making handset division from its other businesses, sending its shares up more than 10 percent.

The move, which comes amid an intensifying proxy battle against activist investor Carl Icahn, would take the form of a tax-free distribution to Motorola's shareholders and is expected to be completed in 2009, the company said.

Motorola has been losing handset market share and is now ranked third in the world. The two entities it plans to split into are Mobile Devices, and Broadband & Mobility Solutions. The latter consists of its network equipment, enterprise and public safety businesses.

Read the full story on eWEEK.com.

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Motorola Spinning Out Handset Division

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