(Adds Icahn comments, other information, updates share price, in
the fourth through seventh and 11th paragraphs.)
DOW JONES NEWSWIRES
Motorola Solutions Inc. (MSI) agreed to buy $1.17 billion worth
of its 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 Motorola Solutions'
board.
Motorola Solutions is paying $49.15 for each of the 23.7 million
shares, a 0.6% discount to Friday's 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 equipment 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.
Icahn on Monday said that he felt good about his position in
both companies. He bought a lot of Motorola Inc. stock as it moved
all the way down to $3 a share in March of 2009 and ended up with
more than 350 million shares before the split last year, Icahn
said.
Those shares currently would be valued at the equivalent of
$12.50 a share if the companies hadn't split, he said.
"Obviously, our faith paid off," Icahn said.
As part of the agreement disclosed Monday, Vincent J. Intrieri,
an officer of Icahn's companies, agreed to resign from Motorola
Solutions' board.
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.
In January, Motorola Solutions' board authorized the addition of
up to $1 billion toward the company's stock-buyback program,
bringing the total to $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 Monday at $50.15, up 1.5%, and were inactive in
after-hours trading. Through the close, the stock is up by 31% in
the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com