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Icahn Sues Moto

5:55 PM -- It is shaping up to be another turbulent week on the good ship Motorola Inc. (NYSE: MOT). Activist investor Carl Icahn has today filed suit against the vendor seeking to get access to documents about the company's plans for turning around its handset division.

The move is part of Icahn's wider campaign to spinoff the phone unit to get what he sees as a more representative board for the company's shareholders. The Wall Street Journal reports that Motorola offered Icahn two seats on the board that he has turned down.

Motorola hinted at the prospect of spinning ― or selling ― off its handset division at the end of January, following more than 12 months of downbeat results from the unit. At the time, analysts wondered what rival company would be interested in buying and questioned how long it would take to reinvigorate the unit. (See Moto: Spin or Sale?.)

Since then the firm has seen an executive shake-up with several senior execs leaving or being replaced. (See More Moto Exec Shakeouts.) ― Dan Jones, Site Editor, Unstrung

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