Title

Motorola eyes separating mobile divisions

Date

(01/31/2008 5:09)

Memo

Reuters
EE Times
(01/31/2008 5:09)

NEW YORK , Motorola Inc., the world's No. 3 mobile phone maker, said Thursday (Jan. 31) it is exploring strategic alternatives including a possible separation of its mobile devices business from other units.

The company said it was looking at a "structural and strategic realignment of its businesses to better equip its mobile devices business to recapture global market leadership and to enhance shareholder value."

It said alternatives could include the separation of mobile devices from its other businesses in order to allow each business to grow and serve customers better.

Billionaire investor Carl Icahn, one of Motorola's biggest shareholders, had urged the company to break up to increase value for its shareholders.

Icahn, who failed to win a seat on Motorola's board last year after a bitter proxy battle, was not immediately available for comment.

Motorola said it does not intend to discuss developments until its board of directors approved a definitive transaction or when the process is otherwise complete.

The company, which named a new chief executive earlier this month, has been losing market share to rivals such as Nokia Corp and Samsung Electronics Co Ltd amid criticism of its phone line up.

Besides mobile devices, Motorola has two other business units: one that sells television set-top boxes and wireless network equipment, and another that sells wireless equipment to enterprise customers. (Editing by Richard Chang)