A funny thing happened on Motorola (NYSE: MOT)'s way to selling its handset business. No one offered to buy it [subscription required]. The logical candidates are firms like LG and Sony-Ericsson that are already in the business. Credit markets are probably keeping private equity interests away.
Etta Kidron, an analyst at Oppenheimer & Co, told The Wall Street Journal, "I think going public with its intentions hasn't made it easier to find a solution and has raised doubts about Motorola's commitment to the business."
The lack of buyers may leave Motorola management in the odd position of having to turn around an operation that it does not want. The company's market share in handsets has dropped from almost 22% worldwide to 12%. The market is taking Motorola's stock down further because it is concerned that fixing the unit could take years. This is, of course, if it can be fixed at all.
Motorola's shares, which traded around $16 in December, are just over $11 now. If management wants the stock to recover, it will have to go to Wall Street with a plan for fixing the handset operation. The plan may face long odds and may mean more quarters of losses, but investors would at least like to know that the largest part of Motorola is not adrift.
Douglas A. McIntyre is an editor at 247wallst.com.
Comfort Zone Investing: Keep your recovery expectations real
Will Americans have to slim down to fit into their cars?
Starbucks: The next McDonald's
