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Monday, 04 February 2008 |
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Motorola mulls mobile device spin-off…
Is Motorola about to go the way of Siemens and Alcatel (and Ericsson for that matter) and continue in the cell phone handset business only by partnering with, or selling out to, an Asian enterprise? Last week the company announced it was exploring the structural and strategic realignment of its businesses to better equip its Mobile Devices business ‘...to recapture global market leadership and to enhance shareholder value.’ The company said its alternatives may include the separation of Mobile Devices from its other businesses ‘…in order to permit each business to grow and better serve its customers.’
“All of our businesses have exceptional people, products and intellectual property and the ability to achieve category leadership in their markets,” according to Greg Brown, Motorola president and ceo. “We are exploring ways in which our Mobile Devices Business can accelerate its recovery and retain and attract talent while enabling our shareholders to realise the value of this great franchise.” Brown is now also reported to be taking direct charge of the device division.
The Motorola moves come after the calculation (by Strategy Analytics among others) that the company has ceded second place in the global handset business to Samsung and the posting of weak Q4 results. In the background corporate raider Carl Icahn, whose business vehicles are deemed to beneficially own, in the aggregate, 114,289,100 shares of Motorola common stock, representing approximately 5% of Motorola’s outstanding shares, is proposing to nominate a slate of four directors to stand for election at the company’s 2008 Annual Meeting of Stockholders. Icahn is apparently not too chuffed with the performance of his investment.
John Williamson
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