Motorola plans reverse stock split as breakup nears

Motorola Inc., the communications- equipment maker that's breaking in two, plans a reverse stock split to help increase the shares' price ahead of a scheduled spinoff.

Investors will get one share for every three to seven they own, with the exact ratio to be decided later by the board. The company will hold a special stockholder meeting on Nov. 29 to seek approval for the move, according to a statement today.

The company, maker of the Droid smartphone, has said it plans to spin off the mobile-phone and set-top box units in the first quarter. The breakup will leave the company with network, two-way radio and bar-code scanner units.

Schaumburg-based Motorola said the reverse split is likely to improve the marketability and liquidity of its shares. The move would also include a corresponding decrease in the number of shares that Motorola is authorized to issue.

Motorola rose 9 cents to $8.38 yesterday in New York Stock Exchange composite trading. The stock has gained 8 percent this year.