Motorola is according to a report in the Wall Street Journal planning to buy back most of its debt in its handset division when the two are split, as well as give it a large amount of cash for investment.
The new mobile phone unit will reportedly be spun…
Motorola is according to a report in the Wall Street Journal planning to buy back most of its debt in its handset division when the two are split, as well as give it a large amount of cash for investment.
The new mobile phone unit will reportedly be spun off largely free of its mounting debt and be given a significant chunk of the telco’s cash, which stands at some US$3-4bn. The unit is also thought to be relieved of pension liabilities and other smaller obligations, as part of plans to create two smaller companies which stand with clean balance sheets, putting them in apposition where they would be able to make acquisitions or be acquired themselves.
The split is scheduled to take place by year end.