Icahn sues Motorola for access to documents

By Sinead Carew and Robert MacMillan

NEW YORK (Reuters) - Activist investor Carl Icahn said on Monday he is suing Motorola Inc (MOT.N: Quote, Profile, Research, Stock Buzz) to force it to hand over documents related to its money-losing mobile devices business to determine if its board failed in its duties.

The actions come after Icahn rejected an offer by Motorola to support two of his four board nominees, according to the Wall Street Journal Online, which cited an Icahn interview.

Icahn, Motorola's second-biggest shareholder, is engaged in a proxy battle with the company, proposing a slate of four directors to the board of the No. 3 phone maker, which has seen its market share plummet in the last year.

In a Reuters interview, Icahn declined to confirm the Journal story except to say that he would not be satisfied unless Keith Meister, chief executive of Icahn Enterprises and manager of Icahn's $8 billion fund, became a director.

The Journal quoted Icahn as saying Motorola had rejected Meister.

"We're not interested unless Meister is on there," Icahn told Reuters, saying that it was important to have a large Motorola shareholder on its board.

"Anything short of that is something we think will not work, and the company will have the same problems it had last year. You need someone on that board that's going to spend a great deal of time making sure the restructuring happens."

The mobile phone maker said earlier this year it is looking at its options, including a separation of its mobile devices business, after pressure from Icahn for such a move.