Updated: Motorola: Icahn Sues For Documents; Letter Calls Board A ‘Frat'; Compromise Rejected

Carl Icahn says he is filing suit against Motorola in Delaware Chancery Court to obtain internal documents, which he says will be key in his brewing proxy battle with the troubled handset maker. In a statement, he claims to have requested documents that would shed light on whether or not management has breached its fiduciary duty by making various optimistic predictions that have not ultimately been borne out. Specifically, he wants documents pertaining to board minutes, internal documents provided to the board of directors, and information regarding corporate travel and the use of company aircraft. Icahn intends to share this information with shareholders, aiding his attempted election of Frank Biondi, Jr., William R. Hambrecht, Lionel C. Kimerling and Keith Meister, to the company’s board.

In addition to the lawsuit, Icahn has sent a new letter to shareholders explaining his frustration. The gist: Motorola continues to be a loser, and although the board has said it’s exploring a restructuring, it’s communicated nothing to shareholders on how this is going. Driving home the point, the letter details a history of optimistic statements from the company over the last 18 months which have not come to pass. From the statement: “I am convinced that Stockholders need to elect ALL of our candidates to send a message to Motorola

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