Motorola Solutions To Repurchase $1.17 Billion In Stock From Icahn

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; [e-mail]