Activist investor Carl Icahn said last night he is suing Motorola to force it to hand over documents related to its mobile devices business to determine if its board failed in its duties.
The actions come after Mr Icahn rejected an offer by Motorola to support two of his four board nominees, according to the
Wall Street Journal Online.
Mr Icahn, Motorola's second-biggest shareholder, is engaged in a proxy battle with the company, proposing four directors to the board of the phone maker, which has seen its market share plummet in the last year.
Mr Icahn said he would not be satisfied unless Keith Meister, chief executive of Icahn Enterprises and manager of Icahn's $8 billion fund, became a director.
The
Journalquoted Mr Icahn as saying Motorola had rejected Mr Meister.
The mobile phone maker said earlier this year it is looking at its options, including a separation of its mobile devices business, after pressure from Mr Icahn for such a move.
Motorola said it rejected Mr 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 that Mr Icahn had declined the offer.