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.
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