Summary
Motorola Solutions, Inc. (MSI) filed an 8-K on February 27, 2012, reporting the entry into a material definitive agreement to repurchase a significant block of its own shares. The company purchased approximately 23.7 million shares from Carl C. Icahn and his affiliates for a total of $1.17 billion in cash. This transaction was executed at a price of $49.15 per share and was funded under the company's existing $3.0 billion stock repurchase program. This share repurchase represents a notable capital allocation decision and a potential signal of management's view on the company's valuation. Concurrently, as part of the agreement, Vincent J. Intrieri, an Icahn affiliate, resigned from Motorola Solutions' board of directors. This move reduces the board size and reflects a resolution in the company's interactions with Icahn, a significant shareholder.
Key Highlights
- 1Motorola Solutions purchased 23,739,362 shares of its common stock from Carl C. Icahn and affiliates for $1.167 billion.
- 2The purchase price was $49.15 per share.
- 3The transaction was completed on February 26, 2012.
- 4The share repurchase was executed under the company's existing $3.0 billion stock repurchase program.
- 5Vincent J. Intrieri, an affiliate of Icahn, resigned from the Board of Directors.
- 6The size of the Board of Directors will be reduced from nine to eight members.
- 7The company issued a press release on February 27, 2012, detailing the agreement and resignation.