Motorola Creates Independent Mobile Devices, Solutions Companies

Schaumburg, IL (AHN) - Motorola said Wednesday it will spin-off its Mobile Devices and Mobility Solutions units into two separate companies in 2009. A search is underway for a CEO for the Mobile Devices business.

Motorola CEO Greg Brown said splitting the two units into publicly-traded companies will increase flexibility, a more focuses management style and a better investment for shareholders.

The new independent mobile handset company "will be well-positioned to regain market leadership as a focused, independent company," Motorola president and CEO Greg Brown said in a statement.

Tuesday, billionaire investor Carl Icahn rejected Motorola's attempt to sidetrack a lawsuit seeking documents about the two units. Icahn, who felt Motorola could be more profitable if the mobile devices business was sold, is seeking several seats on Motorola's board of directors.