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Motorola gives in to Icahn
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Motorola has finally given in to activist investor Carl Icahn and appointed two of his four nominees for Motorola's board of directors. Motorola had offered to appoint two out of the four nominees previously, but it said it would not appoint Keith Meister to the board since it wasn't familiar with him. The compromise sees Meister joining the board effective immediately. Meister is a managing director of Icahn investment funds. The other new board member is William R. Hambrecht, the founder and CEO of W. R. Hambrecht and Company. Icahn is the second biggest shareholder of Motorola with a 6.4 percent stake.
As part of the compromise, Icahn will not solicit proxies at the company's annual meeting and will dismiss litigation against the company.
For more on the Motorola vs. Icahn squabble:
- read this press release
More stories about Motorola
Comments
Posted by WilliamC | April 8, 2008 - 9:12am
I commend Ichan for his efforts in trying to save Motorola. Motorola has been part of the American landscape for years. Why on earth would we want it to die? The general thinking is to let a company cease operations because it is having problems or sell it. Some of problems is of Motorolas making and the souring of our economy is the other reason. This is the general thinking in Sprints case too. I don't suscribe to either. You don't get rid of a pioneer and innovator because the times are hard. You make your self better and reinvigorate your company and assets. Clean your company up and make it lean and mean. Make it more efficient and get new talent at the helm be it management or purchase companies that make your portfolio look attractive. There is a notion that giving up is the norm for America. Our country wouldn't be the beacon of freedom through out the world if we gave up and didn't fight relentlessly to defend it. Here! Here!
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