Breakup Commences for Motorola, But Questions Remain

3/26 - "...with the separation expected to occur in 2009, many questions remain unanswered, including the capital structure of the two separate entities, what will happen to the Motorola brand, and allocation of management, technical and IP resources. There is also no guarantee the spinoff will occur and it is hard to tell whether shareholders will support or try to hamper this process."

"Ultimately, we believe the Mobile Devices unit can be successful as a standalone company under new management; however, standalone or integrated the recovery will be a long and difficult process that will need significant financial support to withstand a period of negative cash flow."

"the added clarity is a positive but doesn't change the
day-to-day realities of Motorola's situation...We remain on the sidelines and reiterate our Perform rating."