Icahn now holds an 8.75 percent stake, or 203.32 million shares, in Motorola, and evidently expects a windfall when the telecom equipment maker breaks apart early next year. The company will separate through a tax-free stock dividend of shares in the new companies to shareholders. According to Motorola, that means both businesses – the enterprise unit and the mobile devices group – will be “well-capitalized.”
An anonymous source told the Wall Street Journal Icahn agrees with the assessment that Motorola will be more valuable as two entities, and he has placed that bet.
Icahn first invested in Motorola in 2007 and he is a key figure behind the spinoff plans. He also tried to get a seat on the board of directors but stockholders said no. Icahn then sued to get four spots on the board; Motorola at last seated two of his recommended directors.
Shares of Motorola closed higher on Tuesday, at $6.99, a .72 percent increase.
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October 12 2018 @ 15:55:08 UTC