MOT Motorola Solutions

As Motorola Inc. (MOT) preps for a formal split early next year, the "when-issued" shares of its spinoff companies opened for trading Friday.

Motorola Mobility Holdings Inc. (MMI), the company's smartphone division, opened at $27.50, then fell 9.1% to $25 by midday. Motorola Solutions Inc. (MSI), the business that makes public safety radios, handheld scanners and telecommunications network gear, opened at $39.25 and rose 2.4% to $40.20 in midday trade.

Meanwhile, Motorola shares traded down a penny at $8.86 after the stock climbed to its highest level in over a year, $8.95, during Thursday's session.

"When-issued" trading allows market participants to seek out the market value for spinoff stocks ahead of the official split.

On Jan. 4, Motorola shares will cease trading under the MOT ticker. Until then, Motorola Mobility will trade under the ticker MMI.WI, and Motorola Solutions will trade under the ticker MSI.WI.

Motorola shareholders of record as of Dec. 21 will receive one share of Motorola Mobility for every eight shares owned. The company will then carry out a reverse split, where one share Motorola Solutions stock will be issued for every seven shares of old Motorola stock.

Last week, Oppenheimer analysts Ittai Kidron and George Iwanyc estimated an initial market capitalization for the smartphone company at around $5 billion.

Susquehanna analyst Jeffrey Fidacaro wrote earlier this week in a note to clients that Motorola Mobility shares would be fairly valued at around $35 per share. Fidacaro estimated that fair value for Motorola Solutions stock at around $38 per share.

The telecom-equipment maker has been preparing for the split since early 2008, when the company agreed to spin off its handset business after pressure from activist investor Carl Icahn.

-By Chris Dieterich, Dow Jones Newswires; 212-416-2611; christopher.dieterich@dowjones.com

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