Motorola Plans to Split Apart

Updated from 10:25 a.m. EDT

Motorola (MOT Quote) said it will split its operations into two separate publicly traded companies, a move that investors hope will be the start of a turnaround for its flagging handset unit.

The company, under pressure by billionaire investor Carl Icahn to do something creative to boost its stock price, had been considering splitting off or selling the handset unit for the past couple of months, but Motorola now says it has made its decision on how best to handle its businesses.

The Schaumburg, Ill., firm said that forming "two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus -- as well as more targeted investment opportunities for our shareholders." ...