Motorola investor Carl Icahn has raised his stake in the company to 6.3%, up from 5%. Over the last few months billionaire Wall Street investor Icahn has stepped up pressure on the company’s board and management to break up Motorola and spin off its loss-making mobile phone business. Mr Icahn has also put forward a slate of four directors for election to the board. According to a Financial Times report, Motorola’s board yesterday urged shareholders to reject the Icahn nominees, setting the stage for a rerun of the proxy battle that Mr Icahn fought and lost a year ago. According to a SEC filing, Mr Icahn and entities controlled by him have spent a total of US$2.06 billion, including commissions, in buying the 142.36 million shares that he now owns.

Mr Icahn began building his stake early last year after the group announced a dramatic decline in profits and market share. This week Mobile Business Briefing reported that Motorola is looking for a new full-time leader of its mobile devices business, following reported difficulties in finding a buyer for the division. The company plans an annual meeting on May 5.