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Old 12-13-2007, 11:43 AM   #1 (permalink)

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Default Motorola may be moving closer to breakup

According to a report in the Wall Street Journal, signs are growing that Motorola is considering whether or not it should piecemeal the company. Activist investor Carl Icahn claims that breaking the company up could translate to $20 billion in additional shareholder value. Analysts seem to agree with Icahn's basic points, but many caution that if Motorola cannot fix the problems with its handset division, then a breakup may not prove as profitable as Icahn suggests. Motorola's CEO Ed Zander recently stepped down from the position. Motorola's CTO Padmasree Warrior also resigned to take the CTO post at Cisco.
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