By Chris Nicholls

ILLINOIS, USA: Motorola today announced it is exploring the possible separation of its mobile handset business from the rest of the company to speed up its recovery.

In a release today, president and chief executive officer Greg Brown confirmed rumours that had been circulating for months that Motorola would look at splitting off its mobile division.

“We are exploring ways in which our Mobile Devices Business can accelerate its recovery and retain and attract talent while enabling our shareholders to realise the value of this great franchise,” he said. 

“All of our businesses have exceptional people, products and intellectual property and the ability to achieve category leadership in their markets,”

However, Motorola said they did not intend to discuss developments further unless or until its Board of Directors approved a definitive transaction or the process is otherwise complete.

It said there could be no assurance that any transaction will occur or, if one is undertaken, its terms or timing.

In a comment on rumours Motorola was set to exit the handset business altogether, a Motorola Australia spokesperson said "Motorola doesn’t comment on rumours or speculation” and would continue to deliver “next generation communication solutions to people, businesses and governments."