Icahn Calls For a Motorola Split

Activist investor Carl Icahn says Motorola still needs to be fixed.
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Carl Icahn says

Motorola

(MOT)

chief Ed Zander's exit was overdue and calls again for the company to be split up.

The comments come just hours after Motorola announced that Zander was stepping down and that No.2 executive Greg Brown was taking his post.

"Although I like Ed Zander personally, I never thought that he was the right man for the job at Motorola," Icahn says in a press release Friday. "Further, I believe that the steps announced today do not even begin to address the major problems at Motorola."

Icahn, who owns 2.9% of Motorola failed in his proxy battle in May to convince the board and the company's shareholders that major changes including Zanders removal were needed.

Icahn wants to see the company split into its four business units: mobile phones, wireless business services, set-top TV box and home networking equipment and a fourth company focused on wireless networking gear.

The company has already announced plans to cut 7,500 employees, as it tries to mount a turnaround. Motorola has had a woeful financial performance in the past year. A large part of the problem has been the company's inability to find a replacement for the Razr phone as it lost its fashion edge.

Rivals like

Nokia

(NOK) - Get Report

and

Samsung

have been taking market share from the struggling No.3 phone maker.

Motorola shares rose 26 cents to $15.93 Friday.