NEW YORK (Reuters) - Motorola Inc’s MOT.N decision to spin off its handset division will not raise a share buying opportunity for investors and will not improve chances of a turnaround at the unit, Barron’s reported on Sunday.
Motorola does not have a detailed plan as to how, or specifically when, the spin-off will occur, Barron’s said in its March 31 edition.
The paper said Motorola has also been unable to find a qualified executive to manage the new handset company.
“There’s a lot of execution risk” to the spin-off plan, Mark Sue, RBC Capital Markets analyst, said in the Barron’s report.
It said the notion that a spin-off would improve the chances of a turnaround in handsets is “seriously flawed”.
Reporting by Yinka Adegoke, editing by Maureen Bavdek