Motorola Solutions Inc. (MSI) agreed to repurchase $1.17 billion
in stock from activist investor Carl Icahn as part of the company's
$3 billion stock buyback program, a plan that will also see an
Icahn representative resign from the board.
Motorola Solutions is paying $49.15 each for the 23.7 million
shares, a 0.6% discount to Friday closing price. At the end of last
year, Icahn was Motorola Solutions' largest shareholder with a
stake of 11.76%, or 38.3 million shares.
The provider of public safety radios, handheld scanners and
telecommunications network gear was created in the split up of
Motorola Inc., which spun off the higher-profile mobile-devices and
TV-set-top-box operations into Motorola Mobility Holdings Inc.
(MMI). Icahn is also the largest shareholder in Motorola Mobility,
according FactSet Research data.
As part of the agreement, Vincent J. Intrieri, an officer of
Icahn's companies, agreed to resign from Motorola Solutions'
board.
A spokesman for Icahn couldn't immediately be reached to
comment.
While widely known for targeting companies he views as
undervalued and then aggressively seeking changes, Icahn has a
mixed track record among his recent battles.
Motorola Solutions board in January authorized the addition of
up to $1 billion toward the company's stock buyback program,
bringing the total $3 billion.
Also in January, Motorola Solutions reported that its
fourth-quarter earnings fell 37% as charges and the sale of its
networks business earlier in the year masked the company's
stronger-than-expected revenue growth.
Shares closed Friday at $49.43 and were inactive premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com