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UPDATE 1-Motricity scraps secondary offering as Icahn drops plan
January 26, 2011 / 3:54 PM / 7 years ago

UPDATE 1-Motricity scraps secondary offering as Icahn drops plan

* Says majority selling stockholder to not sell shares

* Shares rise 10 pct

Jan 26 (Reuters) - Mobile data services seller Motricity Inc MOTR.O withdrew a planned secondary offering, as its largest stockholder Carl Icahn opted not to sell shares at this time, sending its stock up 10 percent.

Icahn’s decision to maintain his 11 percent stake is seen as a mark of confidence in the company, which debuted on Nasdaq in June last year.

Icahn Associates Corp owns about 4.4 million shares in Motricity, according to Thomson Reuters data.

The company was not going to receive proceeds from the proposed offering, unless the overallotment option to purchase additional shares was exercised by the underwriter, it said.

Motricity counts wireless providers Verizon Communications (VZ.N), AT&T Inc (T.N), Sprint Nextel Corp (S.N) and T-Mobile among its customers.

Motricity shares, which have more than doubled over the last six months, were up $1.12, or 6 percent, at $18.73 in morning trade on Wednesday on Nasdaq. They touched a high of $19.50 earlier in the session. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Gopakumar Warrier)

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