Motorola splits into two public entities

Reuters reports that the US-based mobile phone manufacturer Motorola plans to split into two separate publicly traded entities and yield to shareholder pressure. The process will be completed in 2009. The announcement sent Motorola shares up more than 10%. It said the deal would take the form of a tax-free distribution. The company, which has been losing market share to rivals, said the two entities would be mobile devices and broadband and mobility solutions. CEO Greg Brown had announced in January this year that the company would examine their business strategy and introduce radical economising strategies.