Motorola to spin off handset division on 4 January

The company has announced that its anticipated break-up will take place at the beginning of 2011, after which Motorola Mobility will trade under the name MMI

Motorola's long-awaited break-up has been dated to 4 January, when its handset unit will be spun off as a separate company.

Motorola image

Motorola has announced the date of its split. Photo credit: CNET News

The company formalised its long-standing plans in a statement, announcing that Motorola shareholders will spin off Motorola Mobility as a tax-free dividend. Shareholders will get one share of Motorola Mobility for every eight shares of the company they hold.

Motorola will conduct a one-for-seven reverse split as soon as the distribution is made. The distribution will happen before the market opens on 4 January. Shareholders as of 21 December will receive the spin-off shares. Motorola will then change its name to Motorola Solutions and trade under the moniker MSI. Motorola Mobility will trade under the name MMI.

For more on this ZDNet UK-selected story, see Motorola breakup scheduled for Jan. 4 on ZDNet.com.

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