In what may be a foretaste of a possible reorganization of the company, Motorola Inc. announced a new chief strategy officer and plans to retire up to $1.7 billion of outstanding debt.
Analysts expect the company to roll out a grand reorganization plan soon.
Richard N. Nottenburg, who has been the company’s strategic advisor since the year began, climbs to the position of chief strategic officer. He will oversee corporate strategy, mergers and acquisitions, Motorola Ventures, business intelligence and new initiatives, according to the company.
Analysts expect the company to restructure its business around its customers rather than its products. Other companies like Nokia Corp. and Cisco Inc. have announced similar restructuring projects.
“Rich has an outstanding record of experience and achievement in technology, and in particular, in telecommunications,” said Chief Executive Officer and Chairman Ed Zander. “His combination of skill, experience, intellect and consumer focus-he is an internationally recognized expert in fiber-optic communications and high-speed optical networks-makes him uniquely qualified to serve as Motorola’s chief strategy officer.”
Nottenburg also served as vice president and general manager of Vitesse Semiconductor Corp. after it merged with Multilink Technology Corp. in August last year.
The company said it will reduce its $1.7 billion debt through two separate transactions, a $300 million cash tender offer due in 2007 and a redemption of its $1.4 billion outstanding notes due in 2006.
The cash tender offer will expire Aug. 5, while the redemption of the notes will end Aug. 23, according to the company.
