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Nov 10 (Reuters) - Activist investor ValueAct, the largest shareholder in walkie-talkie maker Motorola Solutions Inc , said the company’s shares were undervalued and that it would talk to its board about ways to enhance shareholder value.
ValueAct, which holds a 9.96 percent stake in Motorola Solutions, said it would talk to the board about the company’s operations, financial and business plans, and mergers and acquisitions strategy.
ValueAct also said it may talk to other shareholders and interested parties.
Motorola’s shares touched a near eight-year high of $71.57 earlier this month but dropped 4.7 percent since Nov. 4, when it forecast fourth-quarter profit far below market expectations.
The Schaumburg, Illinois-based company has been hit by weak sales in Latin America and a strong dollar. Sales have also slipped as its major customers, which include police and fire departments as well as other government agencies, have curtailed budgets.
Motorola Solutions is counting on its services business - which provides communication services to governments, businesses and public safety agencies - to drive growth. The company said earlier this year that private equity firm Silver Lake would invest $1 billion to boost the business. (Reporting by Abhirup Roy in Bengaluru; Editing by Sayantani Ghosh and Maju Samuel)