Motorola said April 7 it reached an agreement with corporate raider Carl Icahn to appoint two board members from the billionaire's candidates and end litigation. The agreement calls for William Hambrecht, founder of WR Hambrecht & Co., and Keith Meister, a managing director of Icahn investment funds, to be nominated to Motorola's board at the 2008 annual shareholder meeting. In addition, Meister was added to Motorola's board, effective immediately.
Motorola also agreed to seek input from Icahn related to "significant matters" involving the planned separation of Motorola's mobile devices business, including its search for a chief executive for this business.
"As part of the settlement agreement, all pending litigation between Motorola and Carl Icahn will be dismissed," the company said.
"This is a very positive step for Motorola in that shareholder representatives will have strong input into board decisions affecting the future of our company," said Icahn.
Icahn, who owns a stake in Motorola, has been pressuring the company to take steps to boost shareholder value. He appeared to win a victory when Motorola announced last month it would split into two independent, publicly traded companies in an effort by the struggling telecom and wireless firm to regain market leadership.
The move will split its Mobile Devices division, which has been lagging in the market for handsets and other mobile phones, and its Broadband & Mobility unit, which makes wireless modems, TV set top boxes and other equipment.
Copyright Agence France-Presse, 2008