Investing With The Billionaires: Icahn Ups His Motorola Stake
By Ian L. Cooper
Inside a month, Carl Icahn has twice upped his take in Motorola, perhaps seeking to bolster his desire to sit on the troubled company’s board. In fact, Icahn upped his stake to 69.1 million shares, or 2.9% after upping his stake to 64.9 million shares, or 2.7% just two weeks ago.
And why not give the man a seat? Here sits a $42 billion troubled company with more than $11 billion of cash on hand that lost about a third of its value over the last few months. They’re in real trouble given hefty competition.
Over here sits a billionaire that wants to convince a troubled company with a lot of cash on hand to buy back shares. Plus, Motorola could use the help. But the company doesn’t see it that way, already advising investors that it would not support Icahn’s bid, nor should investors.
Keep a close watch on Motorola leading up to the May 7, 2007 shareholder meeting.
Take care,
Ian L. Cooper, Editor, Early Alert Trader
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