Motorola Confirms Restructuring; May Separate Handset Business
By Joseph Weisenthal - Thu 31 Jan 2008 02:56 PM PST
As rumored earlier this week, Motorola (NYSE: MOT) says it is exploring “structural and strategic realignment”, which may involve the separation of its handset business from the rest of its operations. The announcement is a little cryptic as to what exactly the company is planning to do. CEO Greg Brown: “We are exploring ways in which our Mobile Devices Business can accelerate its recovery and retain and attract talent while enabling our shareholders to realize the value of this great franchise.” As usual, the company is offering no assurances that its efforts will work and it doesn’t plan to provide an update until the effort has reached fruition. Release
Nomura analyst Richard Windsor, who first broached the subject in a client note, suggested that the company may focus exclusively on its enterprise and government businesses. He rejected suggestions, however, that a Chinese handset vendor may buy the business.
Activist investors and Motorola gadfly Carl Icahn has released a response to the announcement: “For many months I have been publicly advocating the separation of Mobile Devices from Motorola’s other business and I am pleased to see that Motorola is finally exploring that proposal. However, we have previously informed Motorola that we expect to run a slate of directors for the upcoming annual meeting and this announcement by Motorola will not deter us from that effort (emphasis added)—we believe Motorola is finally moving in the right direction but certainly still has a long way to go.”
Posted in: Companies, Motorola
