Motorola (NYSE: MOT) is planning to conduct a reverse stock split to boost the company’s share price following the spinoff of its mobile-phone business. Investors would get one share for every three to seven they own, reports Bloomberg.
The reverse stock split would occur after Motorola spins off its handset and set-top box units next year to create Motorola Mobility. The remaining unit, Motorola Solution, consisting of its two-way radio and bar-code scanner units, would conduct the reverse split. The company will hold a special meeting on Nov. 29 to seek approval for the move, and ultimately it will be up to the board on what ratio is best, according to a statement today.
The company’s stock was trading today at $8.71 a share. After the spinoff, the company could trade lower. While the reverse stock split doesn’t change the value of the company, there’s a negative stigma about a company that trades below $5 a share.

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