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Monday, March 31, 2008

Icahn Files Suit, Intensifying Battle With Motorola

Slashdot It! The activist investor Carl C. Icahn said that he was suing Motorola to force it to hand over documents related to its loss-making mobile devices business. Mr. Icahn, Motorola’s second-biggest shareholder behind the asset management firm Dodge and Cox, is engaged in a proxy battle with the company. He is seeking the documents to determine if the board failed in its duties. He has proposed a slate of four directors to the board of Motorola, whose market share has plummeted in the last year. Motorola said this year that it was looking at its options, including a separation of its mobile devices business, after Mr. Icahn pressured for the move. The Icahn Group said it had filed a lawsuit in Delaware Chancery Court, seeking documents, including board discussions, about the potential spinoff of the mobile devices business and the unit’s performance. “We demanded these materials for the purposes of enabling us to investigate whether and to what extent the board of directors of Motorola failed in their duties as directors,” Mr. Icahn said in a letter to Motorola shareholders. Mr. Icahn also asked for documents, if any, showing use of Motorola’s aircraft and property by senior management, directors and their families. Mr. Icahn holds about 6.3 percent of Motorola, according to March 5 data. He also questioned whether Gregory Q. Brown, recently appointed as chief executive, was qualified to do the job after more than a year of missteps by his predecessors. A Motorola spokeswoman, Jennifer Erickson, said the company had not yet received a copy of the lawsuit. Shares of Motorola were up 44 cents Monday, to $9.69 on the New York Stock Exchange. Get Daily Updates via Email Protect your computer with Windows Onecare Get paid $7.50 for reviewing my post Ad Space

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