Motorola to consider separating mobile devices business

By Lisa Kerner

Charlotte, N.C., Jan. 31 - Motorola, Inc. announced it is exploring "the structural and strategic realignment of its businesses" to enhance shareholder value.

Alternatives could include separating Motorola's mobile devices business from its other businesses.

"We are exploring ways in which our mobile devices business can accelerate its recovery and retain and attract talent while enabling our shareholders to realize the value of this great franchise," president and chief executive officer Greg Brown said in a company news release.

Motorola does not plan to discuss the review unless or until its board approves a transaction or the process is complete.

In November, activist investor Carl C. Icahn suggested that Motorola split into separate companies: a mobile devices company, an enterprise mobility company, a connected home company and a company focused on mobile networks infrastructure.

While Icahn was pleased with Motorola's decision to review alternatives, he still expects to run a slate of directors at the upcoming annual meeting.

"This announcement by Motorola will not deter us from that effort - we believe Motorola is finally moving in the right direction but certainly still has a long way to go," Ichan said in a statement released on Thursday.

Motorola is a Schaumburg, Ill.-based communications company.

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