Motorola Inc. (NASDAQ:MOT) is going to give in to some if not all of Carl Icahn's demands. It's just a question of when and how much it will cost.
Ichan reported a 2.38 percent stake in Motorola yesterday, up from 1.39 percent in January, according to the Wall Street Journal (subscription required). His goal -- not suprisingly -- is for Motorola to spend $11.2 billion in cash to repurchase shares.
The one-time corporate raider wants a seat on Motorola's board, though stiring things up, not operations, is his strong suit. Motorola is urging shareholders to vote against Icahn, who would probably prefer not to attend one meeting of the company's board, or any other one.
Motorola shareholders should remember that Icahn has got his way with Blockbuster Inc. (NYSE:BBI), got Time Warner Inc. (NYSE:TWX) to increase its share buyback, and has gotten countless other companies to do what he wants, or pretty close to it.
The best thing that Motorola can do for its shareholders would be to figure out how to make Icahn happy. Otherwise, things will get real ugly real fast.
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Reader Comments (Page 1 of 1)
3-15-2007 @ 6:55PM
STEVE said...
IF MOTOROLA WOULD TIE COMPENSATION TO EXECUTIVE PERFORMANCE, MAYBE HE WOULD SEE A TIGHT RUN SHIP!!!
I.E CHRIS "MEMBER OF THE LUCKY SPERM CLUB" GALVIN
AND NOW ED "DO VERY LITTLE" SANDER
3-18-2007 @ 10:56AM
Pete said...
Motorola is a dead end stock and has been for many years. Sell the company so it will be worth owning it. It's a dog.