Activist investor Carl Icahn has filed to purchase another $2 billion of Motorola's stock, which he said in January is undervalued. At that time, he also challenged the company to reward shareholders with a larger stock buyback and take on more than its present $4.4b in debt. Motorola disclosed on Jan. 30 that Icahn had a 1.4% stake in the company and was demanding a seat on its board; the announcement caused shares to jump 6%. Icahn has a reputation for pushing through corporate change to boost slumping stock prices. Motorola shares fell 9% in 2006 and are down 10% so far in 2007. They were up over 3% to $19.09 in after-hours trading yesterday on the news.
Sources: Bloomberg, Business Week
Commentary: Motorola: Skeptical On Icahn Purchase, Awaiting Catalyst • Motorola: Street Has Second Thoughts About Icahn • Motorola Is Dead Money - Barron's
Stocks/ETFs to watch: Motorola Inc. (MOT)
Conference call transcript: Motorola Q4 2006
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