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10-01-2013, 10:03 PM #1
Carl Icahn Supposedly "Pushed Hard" for $150B Apple Share Buyback
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)
Last edited by Akshay Masand; 10-02-2013 at 12:23 AM.
10-01-2013, 10:33 PM #2
You wrote 150 million instead of billion. But heck, what's the difference, I wouldn't know what to do with 150 million let alone billion.
10-02-2013, 06:17 AM #3
This guy has a huge set. He buys a big stock position in a company (not just Apple) and then tells the management that they need to institute a big buyback program or increase the buyback they already have in place. This is designed to drive up the stock price and who benefits from that? The guy with the big stock position. This is how the rich get richer.
10-02-2013, 07:59 AM #4
Yes, it is how a capitalist environment thrives. He has every right to buy stock. Yet he is trying to leverage the stock for his own benefit. They did use the word "bullish" to describe some of his actions. Very smart guy when it comes to making $$. I'm about to ask him for a loan