March 13, 2007 7:59 AM PDT
Icahn ups bid for Motorola board seat
Billionaire investor Carl Icahn, who is trying to win a board seat at Motorola, significantly increased his ownership of the company's stock, according to a document filed with the U.S. Securities and Exchange Commission on Monday. He has bought 59.4 million additional shares, taking a 2.38 percent stake in the company.
In January, Icahn acquired enough shares to take a 1.39 percent stake in the company and notified Motorola's board of directors that he wants to be considered for a seat. Last week, Motorola urged shareholders not to vote for him at the annual shareholder meeting scheduled for May. Icahn's initial proposal for a board seat came just weeks after Motorola had announced disappointing fourth-quarter earnings, as handset prices continued to decline. He wants the company to spend its $11.2 billion of cash to repurchase its shares. Meanwhile, Motorola's management team wants to use its cash to make investments to broaden its product portfolio.
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