Motorola has informed its shareholders in a notice for the firm's annual meeting (to be held May 7) that "Mr. Icahn's nomination has not been endorsed by your board of directors. We urge stockholders not to sign any proxy card that you may receive from the Icahn entities." Carl Icahn and his entities currently own a 1.4% stake in Motorola and last week they announced they intend to buy more shares. Icahn and Icahn Partners LP are each filing to buy $120 million - $500m and two affiliates are said to have filed to acquire between $500m to less than 25% of Motorola's shares outstanding. Motorola is reportedly in talks with Icahn, but it is unclear whether his entities will nominate him or seek investor support from proxy votes, according to Bloomberg. Motorola's shares have struggled over the past year, currently at $18.50, trading near their 52-week low and 30% off their 52-week high of $26.30.
Sources: Bloomberg, The Wall Street Journal
Commentary: Icahn Wants More Motorola • Icahn Files to Buy Another $2B Motorola Shares • Motorola: Skeptical On Ichan Purchase, Awaiting Catalyst
Stocks/ETFs to watch: Motorola (MOT). Competitors: Nokia (NOK), Ericsson (ERIC). ETFs: HOLDRS Broadband (BDH), HOLDRS Wireless (WMH), iShares Goldman Sachs Semiconductor (IGW), iShares Goldman Sachs Networking (IGN)
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