CHICAGO — Motorola Inc. settled its proxy battle with Carl Icahn on Monday, agreeing to back two of the billionaire investor's nominees for its board of directors in exchange for his dropping litigation against the cellphone maker.
The agreement avoids a showdown at the company's upcoming annual meeting for what would have been the second straight year.
Motorola named Keith Meister, a managing director of Icahn investment funds, to its board and said it would nominate him and fellow Icahn nominee William Hambrecht for director slots. The agreement virtually ensures that both will be elected at the company's May 5 shareholder meeting.
Schaumburg, Ill.-based Motorola also will seek input from Icahn on the planned separation of its mobile devices unit and search for a chief executive for that business under the terms of the agreement.
Icahn agreed not to solicit proxies at the annual meeting, to dismiss litigation against the company and to vote his shares in support of all of the board's nominees.