Apple CEO Tim Cook met with the billionaire investor Carl Icahn for dinner recently, for a meeting in which Icahn pressured Cook to initiate a $150 billion buyback of AAPL stock. The proposal was revealed in a post to Twitter by Icahn where he didn’t indicate how receptive Cook was to the idea but did say the two parties plan to meet again before the month is over. Icahn wrote the following about the matter:
Had a cordial dinner with Tim last night. We pushed hard for a 150 billion buyback. We decided to continue dialogue in about three weeks.
The Cupertino California company already has a share buyback program in place, in which the company plans to spend $100 billion in the next few years on it as well as an increased dividend. Icahn believes that Apple should spend more of its considerable cash and reserves on its own stock, particularly at its current price.
With the two parties set to talk again in three weeks, the discussions may come after Apple’s next quarterly earnings conference call, which usually happens in the third week of October. It’s possible that Apple may use the conference call to announce changes to its dividend or share buyback programs. Alternatively, the Cupertino California company could simply provide investors with an update on its cash position.
Source: Carl Icahn (Twitter)