Motorola and investor Icahn reach a deal
Settlement between dissident shareholder Carl Icahn and the struggling company gives Icahn ally a seat on board and input into the planned spin-off of mobile devices business.
Motorola and activist investor Carl Icahn on Monday announced a settlement to their long-running conflict. The result: Two Icahn allies will be nominated to Motorola's board of directors.
As part of the deal, all outstanding lawsuits will be dropped, and Icahn has agreed not to launch a proxy battle at the company's upcoming shareholders meeting.
Private equity star William Hambrecht and Keith Meister, managing director of Icahn investment funds, will be nominated for Motorola's board at the shareholders meeting. Meister has also been appointed to the board, effective immediately.
The Icahn Group owns about 6.4 percent of Motorola's outstanding stock.
Icahn has been agitating for better financial performance but has met resistance from company management.
As part of the settlement,said that it will seek Icahn's input into the company's plan to and the search for a CEO of that spun-off company.