Motorola To Spinoff Its Semiconductor Division

| News

Now that Apple is starting to cozy up to IBM for the heart of its computers, what of Motorola, who has supplied processors and other chips for Apple products for decades?

According CBS MarketWatch, the semiconductor arm of Motorola will become a subsidiary of Motorola and stocks for the spinoff will be offered publicly. This from the MarketWatch article, Motorola proceeds with $2 bln spinoff:

Motorola, best known as a maker of cellular phones and other wireless devices, filed Wednesday to make an initial public offering for its struggling semiconductor unit thatis expected to raise $2 billion.

The filing comes one day after Schaumburg, Ill.-based Motorola (MOT: news,chart, profile) selected Ed Zander as its new chief executive and almost three months after first announcing plans for the spinoff.

Motorolais shares fell 1.2 percent lately to stand at $13.17.

Motorola and its chip unit have struggled in recent years under a bloated cost structure and waning demand. In 2003, Motorola likely wonit be ranked as a top 10 semiconductor manufacturer for the first time since it began producing chips in 1959.

Get the full story from CBS MarketWatch.

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