Motorola Sells Nextel Shares to Cover Restructuring Costs

Motorola has sold 25 million, or about 23%, of its approximately 108 million shares of the America's based Nextel Communications. The block sale of the 25 million shares will result in a pre-tax gain of approximately US$250 million, which will be included in Motorola's first quarter financial results. Additionally, as it has previously indicated, Motorola is considering implementing actions in the first quarter to improve its cost competitiveness. In any event, it is expected that any first-quarter charges associated with these actions would be no larger than the gain from the block sale of Nextel stock.

"We are entering into these transactions in order to realize a portion of the benefit from the appreciation of our considerable equity investment in Nextel, while remaining one of Nextel's largest shareholders," said Christopher B. Galvin, chairman and CEO of Motorola. "Motorola continues to have great confidence in the ongoing success of Nextel, a company with which we have had a long and mutually beneficial relationship. Nextel remains one of our largest global customers.

Prior to the transaction, Motorola held approximately 11% of Nextel, which has now fallen to approximately 9%."

Posted to the site on 5th March 2003