Carl Icahn today upped the pressure in his proxy battle with Motorola. In a CNBC interview (Monday March, 24th) he said that he would like to see the co spun-off and that he is filing a new lawsuit.
The lawsuit, filed in the Chancery Court in Delaware, is seeking internal documents related to the potential spin-off of the mobile phone unit as well as details on the use of corporate aircraft by board members and senior management.
Icahn, proceeded in accusing the board and management of mishandling the all-important cell phone division and that the handset business has been poorly managed.
Icahn’s suit seeks, according to Fortune – among other things, internal communications related to the company mobile phone strategy and to have four candidates elected to the Motorola board.
Icahn and his investment partners hold 144.5 million shares, or about 6.5% of Motorola’s outstanding stock. The group has more than quadrupled the size of its stake since early last year, when Icahn first made public his criticisms of the wireless tech titan.
In a statement Monday, Icahn’s group points to a year of disappointments from Motorola (MOT) management led by CEO Greg Brown, noting the swing to a loss in the mobile phone business and the turmoil in the executive ranks with “two CEO’s and three CFO’s in little over a year.”
MOT currently trading $9.72 up $0.46 into the session.