Icahn has large Apple stake, wants larger buybacks

Carl Icahn calls Apple ‘extremely undervalued’
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First Published: Wed, Aug 14 2013. 01 10 AM IST
Activist investor Carl Icahn. Photo: Reuters
Activist investor Carl Icahn. Photo: Reuters
San Francisco: Activist investor Carl Icahn said on Tuesday he has built a “large position” in Apple Inc. and had a “nice conversation” with CEO Tim Cook about a larger stock buyback.
The billionaire with a reputation for pushing aggressive corporate change said on Twitter he planned to talk more with Cook, who has presided over a sharp fall in the share price over the past year. Icahn called the iPhone maker “extremely undervalued.”
“Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now,” Icahn tweeted. “We plan to speak again shortly.”
The company was not immediately available for comment.
The world’s largest technology company this year bowed to increasing pressure from shareholders, sharply increasing its return of cash. It also averted a dispute with Greenlight Capital’s David Einhorn, who sued the company to try to block a controversial proposal regarding voting on preferred shares.
Apple eventually withdrew the proposal.
In April, the company said it plans to return $100 billion to shareholders by the end of 2015—double the amount set aside previously. It got there in part by raising its dividend 15% and increasing its share buyback program six-fold to $60 billion, in one of the largest programs of its kind.
Apple shares were up 4.4% at $484.87 on Tuesday afternoon on the Nasdaq. They have fallen 33% since peaking in September 2012.
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First Published: Wed, Aug 14 2013. 01 10 AM IST
More Topics: Carl Icahn | Apple | share buyback | Tim Cook |
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