27-03-2008
Motorola confirms plans to divide company
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US communications company Motorola has confirmed plans too separate its mobile phone operations from the rest of the company.
In the face of difficulties within the market for Motorola-branded mobile handsets, the company is to separate the unit in a manner that will create two distinct legal identities, both of which will be traded publicly.
Analysts have given their approval to the decision, stating that the move was a sensible course of action to take, reports the Financial Times. "Our priorities have not changed with [this] announcement. We remain committed to improving the performance of our mobile devices business," said Greg Brown, chief executive of Motorola.
The decision comes after a period of unhappiness among investors. With a history going back 80 years, the company previously known as Galvin Manufacturing Corporation has been at the forefront of a number of different products, including the walkie-talkie and the in-car radio.