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Motolora tears apart a plan to face capital difficult problem

August 10, 2008

Guide language: Foreign media publishs analytic article to say today, motolora has decided to tear apart mobile phone branch, but it is very difficult to should make a relevant financial plan.

Motolora announced this year in March, will tear apart what become independent for two to appear on the market company, among them dedicated at mobile equipment business, another basically begins broadband and mobile solution professional work. If everything is successful, of Motolora tear apart a plan to will be finished 2009. Because fail to roll out charming new-style mobile phone tardy, branch of Motolora mobile phone lasted for some time in the past deficit. Tear apart after finishing, new the mobile phone company that establish may become ” slums ” .

Current, motolora still is mobile phone branch to search a new director in effort. Since Feburary 2007, branch of Motolora mobile phone does not have a director all the time, and by company CEO Greg Braun (Greg Brown) personally in control of. Message personage discloses, executive vice-president of the popular Hou Xuan’s person of person of door of palm of branch of Motolora mobile phone, HP holds De Buladeli in the palm (Todd Bradley) had forgoed this one opportunity. So far, motolora has not published a comment at this point.

Wh whoever takes up the post of director of department of Motolora mobile phone, capital is the one big difficult problem that must solve. Suffer periodic effect, enterprise of science and technology needs to withhold more cash surplus than average company. Credit analyst predicts, if branch of Motolora mobile phone can turn round the situation of deficit, so tear apart after be independent company, it still needs the operation that ability of 4 billion dollar manages two years. More what is more,the rather that, since 2006, branch of Motolora mobile phone already deficit 1.6 billion dollar.

4 billion dollar is equivalent to Motolora almost up to the anticipation by 2008 the half of cash surplus. Up to by this year March, the cash surplus of Motolora is 7.7 billion dollar, far under up to the 15.6 billion dollar by 2006, this is main because buy other company and share,counter-purchase. Meanwhile, the debt of Motolora is 4.2 billion dollar, slightly under the level by 2006. If be mobile phone branch to take out 4 billion dollar, the cash place remnant that will mean Motolora to stay for another group very few, and still have much debt.

The analyst expresses, the credit grade of Motolora will be reduced to come ” rubbish ” (Junk) . If this kind of circumstance happens, the leasehold cost of Motolora will raise, perhaps be forced to sell another branch in order to obtain more fund. Motolora enterprise and mobile group can generate the cash of several dollars every year now to flow, but after tear apart, the outstanding achievement of this branch may get certain negative effect. Current, motolora enterprise and mobile group and mobile phone group share factory, information system and purchase channel. Message personage discloses, should depart both thoroughly come, the likelihood needs time of a few months, produce the cost of 750 million dollar.

Of course, branch of Motolora mobile phone also can try to seek new fund, potential choice includes illicit collect capital, strategy collaboration, perhaps issue can change a stock. Nevertheless, american billionaire, radical investor blocks Er ยท Yi Kan (Carl Icahn) won’t invest more capital to Motolora, in fact, he is decreased recently held oneself to be in the investment of Motolora. Current and character, any investor or controller want to lead Motolora to walk out of predicament, will face enormous challenge. (Martin)

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Written by ITTech · Filed Under IT Magazine