Billionaire financier Carl Icahn was not elected to Motorola Inc's board of directors, preliminary results released on Monday night by the cellphone maker showed.
Final results from Monday evening's shareholder vote could takes weeks to tabulate, the company said in a statement.
Speaking at the cellphone maker's meeting in downtown Chicago, Icahn acknowledged a likely defeat in a fierce proxy fight, saying he did not think he had acquired enough support from shareholders to be elected to Motorola's board of directors.
PHOTO: AP
"I think it'll be tough for me to win," Icahn said before the tally was released. "I congratulate them if they win. And I really hope they can produce what they say they will."
Schaumburg, Illinois-based Motorola, the world's second-largest handset manufacturer behind Nokia, did not release vote totals.
Chief executive officer Ed Zander said in a statement after the vote that he "valued" Icahn's input and that the beleaguered firm would continue working to fix its finances.
"During the past few months, we have met with and listened to a large number of our stockholders, including Mr. Icahn, and we value their insights and perspective regarding Motorola," he said. "We remain steadfast in our commitment to continue building value for all of our stockholders."
Icahn and his affiliates have amassed a 2.9 percent stake in Motorola and spent months trying to convince shareholders that he could turn around its ailing fortunes.
Motorola posted its first quarterly loss since 2004 last month and since October has lost about one-third of its market value.
Morningstar analyst John Slack said despite the outcome of Monday's vote, Icahn's presence would likely still be felt at Motorola as executives spend the next several quarters working to fix the performance of the struggling mobile device division.
"This is akin to trying to turn an aircraft carrier really quickly. You can't do it," Slack said. "I think the important thing is to put the distraction behind them."
Icahn criticized Zander for Motorola's dramatic fall from its once-golden status and said the board should replace him if Motorola cannot fix its financial hemorrhaging.
"What I wanted to do with Motorola was go on this board just to make sure, to make sure that this board is going to make management accountable," Icahn said. "I think Motorola is a great company. And a great deal can be done. But I don't know if it can happen without somebody there to make sure that the numbers are being met."
Zander said on Monday that he was confident the company would be able to repair its mobile device division, which has suffered as sales of its once-blockbuster Razr phone declined.
"In 2004 and 2005 and most of 2006, this is the vision that knocked the cover off the ball," he said. "We have to get it back on track."
Zander said the firm planned to premier new handheld devices next week in New York that it hoped would help begin its transformation.
"I think next Tuesday when they start releasing the new handsets, that's as important to Motorola as the shareholder meeting today [on Monday]," Slack said. "It's all about getting compelling products out in the market."
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