MOTOROLA MAY SPLIT INTO TWO COMPANIES

A Reuters article reports that Motorola shares went up by more than ten percent, the company announced that it would divide into two public traded entities. Earlier this year, the company conducted a strategic review of its business that may have lead into a plan to separate its struggling handset business from other ventures. The division is projected to be completed in two years and would come in the form of a tax-free distribution to the shareholders of Motorola.
Motorola dropped to third in the world after suffering share losses on the mobile phone market. Some analysts feel that the split will usher in improvements for the company because it provides greater flexibility, targeted investment opportunities for shareholders and increased management focus. Motorola has initiated a global search for the new CEO for the handset business. The company also stated that the planned split would still be subjected to financial, tax and legal analysis before being implemented.