Motorola, Inc. (NYSE:MOT) shares jumped $0.61, or 3.29%, to $19.13 today after the company issued a press release confirming that Carl Icahn and his partners are planning to purchase more than $2 billion worth of additional shares. The large transaction could potentially leave Icahn with a 4.4% stake in the company, making him the second largest institutional shareholder. The 1.6% holder was required to inform the company of this pending purchase under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which will also require him to wait an additional 30 days before buying more stock.

It is already well known that Carl Icahn is seeking representation on the company's Board of Directors and wants to unlock shareholder value through a massive share buyback program. Given his many prior successes in unlocking shareholder value through similar strategic alternatives (most recently the Temple-Inland breakup), it is very possible that he will succeed in generating value. Moreover, he should not have trouble gaining support for his proposals with many investors somewhat irked over the company's excessive cash on hand. Combined, these factors make MOT a stock that is definitely worth watching over the next few months!

Related Companies
Arris Group, Inc. (ARRS)
Microsoft Corporation (MSFT)
C-COR Incorporated (CCBL)