Motorola to raise cash via two offerings

The global slump for telecom equipment sales has already caused Motorola to cut 26% of its work force. Now the wireless equipment provider has announced plans for raising up to $1.4 billion from two separate offerings that will be used to reduce short-term debt and for "general corporate purposes."

Motorola's public offering of $875 million in equity security units consists of senior notes and purchase contracts to buy Motorola shares. The company said it may sell an additional $125 million of equity units should demand warrant. The company also will sell privately $400 million of 10-year unsecured notes.

Motorola expects to post its first full year operating loss in more than 45 years. It is the third money-losing telecom vendor behind Lucent Technologies and Nortel Networks to raise money via the sale of convertible securities.

--Amalia Parthenios, staff writer