Motorola Inc. said its CEO Greg Brown is stepping in to take direct control of the mobile-device business from Stu Reed, who had been running the unit only since last summer. Reed will remain with the company. Motorola previously announced it is considering a restructuring of the troubled business that could include a spinoff or partnership.
Strategy Analytics asks, "Who might want Motorola's handset business?" There aren't many candidates, answers the firm, given the poor track records of previous handset mergers and JVs. Likeliest, according to these folks: a full service infrastructure vendor from Asia, or perhaps a minority investment by a company that knows how to do software.
In another article Monday, The Seattle Times also noted the paucity of
buyers for the unit, which is nevertheless thought to be worth around
$5 billion. Carl-Henric Svanberg, the CEO of LM Ericsson, told analysts
that his company naturally looks at everything, but would be "very
cautious" about this.
Meanwhile the pressure continues. Carl Icahn served notice that he is nominating four directors for Motorola's board of directors. They are Frank Biondi Jr., William R. Hambrecht, Lionel
C. Kimerling and Keith Meister. Our sister blog
Tech Confidential notes that Motorola seems a little more receptive than it was a year ago. Icahn says this will boost the firm's capabilities in communications and technology (Biondi and Hambrecht); the processing of semiconductor materials (Meister); and general business and investing insight from Kimerling.
Motorola shares were hovering around $12.20 Monday, at the low end of the past year's range: $9.43 to $19.93. -
Baz HiralalRead more about Icahn's strategy and his nominees
Go to the story from The Seattle Times
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