NEW YORK (Thomson Financial) - Motorola Inc. Monday said shareholder Carl
Icahn has filed a lawsuit against the company to make certain materials and
documents related to the company's predictions about the mobile devices business
available for inspection.
Management's statements and predictions over the past 12 months have too
often been proven wrong, Icahn said, and the materials are being demanded to
ascertain whether management and the board failed in their duties to supervise
and set policy and direction for the company.
Among the documents being sued for are any board and committee minutes and
documents relating to the service and selection of Motorola's senior officers,
the prospects or strategy of Motorola's mobile devices business and the
realignment of its business regarding mobile devices, including the potential
spinoff of the unit.
In a letter to fellow shareholders, Icahn said, "As we all are painfully
aware, over the past 18 months, the market value of Motorola has dropped by over
$37 billion. More than $17 per share of stockholder capital has vanished under
the 'guidance' and 'leadership' of the current board."
The letter also urges shareholders to vote for three nominees to the board -
Frank Biondi Jr., William Hambrecht and Lionel Kimerling - to bring "substantial
intelligence and experience to the board" and "broaden its perspective and
provide voices to challenge the chaotic status quo at Motorola."
Icahn also said the presence of a stockholder is needed on the board, and is
nominating Icahn Group executive Keith Meister.
Last year, Icahn added, the board assured shareholders it had a plan to
"right the ship" which resulted in Icahn's nominees to the board losing the
election by a narrow margin.
"Protect your investment - Vote for our nominees," Icahn's letter said.
Motorola shares rose 1.8% to $9.42 in early trading.
Christie Rizk
cr/vj
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