Icahn sues for data from Motorola

Activist investor Carl Icahn said Monday that he was suing Motorola Inc. to force it to hand over documents related to its money-losing mobile devices business to determine whether the board failed in its duties.

The actions come after Icahn rejected an offer by Motorola to support two of his four board nominees, according to the Wall Street Journal.

Icahn, Motorola’s second-biggest shareholder, is engaged in a proxy battle with the company, proposing a slate of four directors to the board of the No. 3 phone maker, which has seen its market share plummet in the last year.

Motorola said it rejected Icahn’s request for “extensive access” to its books, but said it offered the investor access to information about the company under a confidentiality agreement, but Icahn had declined the offer.

The Schaumburg, Ill.-based mobile-technology company said this year that it was looking at its options, including a separation of its mobile devices business, after Icahn applied pressure for such a move.

The Icahn Group said it filed a lawsuit in Delaware Chancery Court on Monday, seeking documents on Motorola’s mobile devices business, including details on board discussions about the potential spinoff and the unit’s performance.

“We demanded these materials for the purposes of enabling us to investigate whether and to what extent the board of directors of Motorola failed in their duties as directors,” Icahn said in a letter to Motorola shareholders.

Icahn also asked for documents, if any, showing the use of Motorola’s aircraft and property by senior management, the board of directors and their families.

Icahn holds about 6.3% of Motorola, according to March 5 data.

He also questioned whether Greg Brown, recently appointed chief executive, was qualified to do the job after more than a year of missteps by his predecessors.

Motorola said Icahn had not laid out “a proper purpose” to give him the right to inspect its books under Delaware law.