27th March - Embattled vendor Motorola confirmed plans on Wednesday to spin off its Mobile Devices business as an independent publicly traded entity.

The announcement, which comes as no great surprise, follows January's revelation that the company was evaluating the structural and strategic realignment of its businesses.

The move also suggests activist shareholder Carl Icahn is finally bending some ears at the company.

"Our decision to separate our Mobile Devices and Broadband & Mobility Solutions businesses follows a review process undertaken by our management team and board of directors, together with independent advisors," said Greg Brown, Motorola's president and chief executive officer. "Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus - as well as more targeted investment opportunities for our shareholders."

However, the split might also suggest that no potential buyers have merged to take the devices business off Moto's hands.

"Our priorities have not changed with today's announcement," said Brown. "We remain committed to improving the performance of our Mobile Devices business by delivering compelling products that meet the needs of customers and consumers around the world. As part of that effort, we have undertaken a global search for a new chief executive officer for the Mobile Devices business."

Brown said the creation of the two stand alone businesses is expected to take the form of a tax free distribution to Motorola's shareholders, resulting in shareholders holding shares of two independent and publicly traded companies. The separation of the businesses is expected to take place in 2009.