Motorola & Carl C. Icahn Reach Compromise
April 7, 2008 11:13 AM | Motorola | Comments (0)
| Motorola and Carl C. Icahn have reached a compromise due to Icahn suing Motorola and demanding internal board documents that he believed would show that directors were lax in running the company. As a result, Motorola has agreed to immediately appoint Keith Meister, a managing director of Icahn investment funds, to its board. Additionally, Mr. Meister and William R. Hambrecht, the founder and CEO of W.R. Hambrecht and Company, will be nominated for Motorola’s board at the next annual meeting. Motorola will also seek suggestions from Mr. Icahn on the planned separation of its mobile devices operations, and search for a chief executive for that business. In return, Mr. Icahn has agreed not to solicit proxies at Motorola’s annual meeting, dismiss litigation against the company and vote his shares in support of all of the board’s director nominees. Mr. Icahn is Motorola’s second-largest shareholder with a 6.4 percent stake. |  |
Last month, Mr. Icahn had sent a letter to Motorola's Board of Directors regarding their decision to break up the company into two companies.
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