SCHAUMBURG, Ill.-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.
Motorola also elected a former chief executive
officer of Deutsche Telekom to its board of directors with immediate effect. Ron
Sommer, 54, who spent 15 years at Sony Corp., also serves as an international
adviser to investment firm The Blackstone Group.
