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Apr. 27, 2007

On April 26, fighting by proxy began in the battle between corporate raider Carl Icahn and Motorola, as shareholder advisory firms took sides in the debate.

The ISS (Institutional Shareholder Services) and The Proxy Governance advised various shareholders that Icahn would introduce a fresh new perspective to the mobile phone giant.

However, Glass, Lewis & Company, another proxy adviser, sided with Motorola's management saying that Icahn lacks a definitive plan to turn the company around, while the current board has already taken steps to greatly improve the company's performance, according to the Chicago Tribune.

Icahn has acquired about 2.9 percent of Morotola stock since January and is seeking a seat on the board.

Meanwhile, Motorola claims that he isn't qualified to any board seat.

ISS is the largest proxy advisory firm, with 1,700 clients. Glass, Lewis has around 300 clients, while Proxy Governance has just over 100.

Shareholders will vote on the board at Motorola's annual meeting on May 7th.

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Source: Wireless Week