Motorola sets stock terms for impending split

Motorola Inc. (MOT) finalized plans to break its operations into two separate companies beginning Jan. 4 that will include a tax-free dividend involving the distribution of all Motorola Mobility common stock held by the company to its stockholders and a reverse stock split of shares of Motorola common stock following the distribution.
The stock distribution calls for Motorola stock holders as of Dec. 21 to receive one share of Motorola Mobility common stock for every eight shares of Motorola common stock they hold. Immediately following that transaction, Motorola will launch a one-for-seven reverse stock split of its common stock. All of this will be effective prior to the market opening on Jan. 4.
Following the split, Motorola’s current Mobile Devices and Home businesses will become Motorola Mobility Holdings Inc. and trade on the New York Stock Exchange under the “MMI” ticker symbol. Current co-CEO Sanjay Jha will become CEO of Motorola Mobility.
The remainder of Motorola’s current operations, which is focused on providing communication solutions to government, public safety and enterprise customers, will become Motorola Solutions Inc. and trade on the NYSE under the “MSI” ticker symbol. Current co-CEO Greg Brown will be president and CEO of Motorola Solutions.
Motorola’s current networks business, which is in the process of being sold to Nokia Siemens Networks, will revert to the Motorola Solutions business should the sale not be completed before the split.
Motorola also announced its board of director lineup for the Motorola Solutions business. The board will include Brown as director; David Dorman as non-executive chairman; William Bratton as a director; General Michael Hayden as a director; Vincent Intrieri as a director; Judy Lewent as a director; Samuel Scott III as a director; Douglas Warner III as a director; and John White as a director.
Both Motorola Mobility and Motorola Solutions will continue to use the Motorola brand following the split.
Motorola reported encouraging third quarter results that included its first quarter of overall growth in four years despite the fact that its handset business saw sales drop year-over-year from 13.6 million devices in 2009 to 9.1 million devices this year.