Activist investor Carl Icahn is trying to increase pressure on Motorola to grant him a seat on its board: This week Icahn sent the company's shareholders a letter claiming that he is willing to spend "the time, effort and money necessary" to win the election. Icahn currently owns a 2.9 percent stake in Motorola through his various affiliates. He notes in the letter that he doesn't understand the company's resistance to making him a board member, given his stake in the company and noted business experience. Icahn also claims that the company's recent shortcomings are reflective of "not only operational failures" but also "a passive and reactive board."
Motorola chairman and CEO Ed Zander urged the board not to side with Icahn and said the company will not "simply add" him to the board to avoid a proxy fight.
To follow the rest of the Icahn-Moto saga:
- read this WSJ report (sub. req.)