Carl Icahn is 23rd in AAPL shareholders’ line with only 0.5% stake

“Andrew Wilkinson of Miller Tabak & Co. notes Icahn Associates clocks in at #23 on the list of the biggest Apple shareholders, at around 0.5%,” Brendan Conway reports for Barron’s.

[F]or all the fuss, and we know just how vocal Mr. Icahn can become on television, his fund holds around 0.5% of shares outstanding at Apple. Granted that’s worth a tidy $2.5 billion but it is well down the pecking order. Icahn Associates’ holding of 4.7 million shares compares to 47.0 million held by Apple’s largest investor – Blackrock – which owns 5.2% or 47 million of Apple valued at $23.5 billion at current prices. Based on his near-hour long appearance on television over lunch, perhaps we should expect to hear the Blackrock folks take to the airwaves all day Friday to pitch their case for how Tim Cook needs to run his company. – Andrew Wilkinson, Miller Tabak & Co.

Read more in the full article here.

MacDailyNews Take: Sounds familiar:

This isn’t Dell, thank Jobs.

Apple has a market cap of $445 billion. Icahn reportedly has just over $1 billion in AAPL. His “large” stake is actually around 0.22% of Apple; not 20%, not even 2%. He’d need to quadruple his current “large” stake just to get to 1%.

Icahn’s stake is “large” to him, not to Apple. To Apple, it’s a drop in the ocean.

So, while he can squawk on Twitter and other media, less than a quarter of one percent doesn’t buy him a lot of financial leverage to “force” Apple to do anything beyond a yawn. At 0.22%, he’s lucky Tim even bothered to pick up the phone.MacDailyNews Take, August 14, 2013

[Thanks to MacDailyNews Reader “Rainy Day” for the heads up.]

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40 Comments

      1. Actually, NDW, although it sounds like it *should* be ‘no’, Macaholic is actually correct. It’s a Northern expression meaning someone who’s a bit full of themselves, but with precious little reason; style over substance (all mouth and (trendy) trousers but nowt beneath the show).

    1. Think about this: Apple can borrow money at say 3% or less. The dividend Apple pays on the stock is about 2.3% today which when they buy the stock back Apple stops paying. Therefore Apple pays .7% on the debt. In addition the interest payment is tax deductible whereas the dividend Apple pays has no tax effect. If Apple pays 20% tax in the US that means that Apple gets a .6% reduction in tax resulting in a .1% net cost.

      Now if you had a company that you thought the stock was undervalued and you had the same cash and conditions as outlined above – wouldn’t you do a larger buyback?

      1. Absolutely NOT. Why should Apple pay ANYTHING to make Icahn richer? Based upon all of his past actions there’s a 99.999% chance that as soon as Apple announces a buy back and there’s an almost immediate bump in stock price Icahn will dump his stock to get his quick profit. Then AAPL falls because he’s dumped it. THEN where will all the long term investors be? Answer: worse off than they are now because Apple’s net value will be less and AAPL will be no higher than it is now? Why sould Apple pay anything to be worse off than they are now?

        Besides, how is a lower stock piece hurting Apple? Answer: It’s not.

        What will a higher stock price do for Apple? Answer: Nothing.

        What can Apple do at a higher stock price that it can’t do now? Answer: Nothing.

        Tell me again why Apple should pay even one penny to do what Icahn wants?

        Besides, if you really look into the details of the prior bond deal you’ll see that your borrowing premise does not hold up. Future bond rates will also be higher than they were the first time around.

  1. Icahn(‘t) is threatening a shareholder proxy war…

    I wish there was a reverse posibility of that, one in which shareholders could vote him and his .22% out.

    Apple could reiisue more shares to dilute his weeny…

  2. Icahn May be a small fish but if he makes whispers in the bigger fishes ears and gets them to agree with him then he may be able to cause trouble.

    Tim would be wide to take him as a deionise threat.

    1. Indeed. The man symbolises everything vile about the way the financial markets work. They would happily gut Apple in order to make a quick buck, then cast it adrift again leaving the new BOD having to scale back in order to re-balance the company. Capitalism is supposed to be about building up, but this lot only know how to destroy.

  3. Is this author claiming that Icahn’s FUND holds 0.28% of Apple while Icahn himself holds about 0.22%. How else can they claim that Icahn controls 0.5%? It’s been widely reported (even by Icahn himself) that he only holds what amounts to less than 0.25%. How did this author get to more than double that — unless he’s just making it up! Is he claiming Icahn has more than doubled his ownership of AAPL shares? (Note Well: I did NOT say ownership of Apple! He owns AAPL shares. This does NOT mean he owns part of Apple.)

    Apple does not have to list ownership in AAPL down that far. So other than guessing or hear-say where is he getting this inflated number that Icahn supposedly controls?

    1. Don’t go away mad, Carl Icahn. Just go away and bedevil some other company.

      And damn, I wish there was some way for Apple to burn his ass on the way out.

      Still, don’t underestimate him. he’s a tricky – and persistent – dick once he sets his sights on something, so this sub-plot will likely have more twists and turns – and maybe many – before it’s over….

      ….the seemingly miniscule size of his holdings notwithstanding
      .

  4. He’s becoming like the Kardashians of the tech finance gossip columns. Most people don’t understand the point of this article, which is that he’s all media bluff and bluster, with less-than-zero power over Apple. But the tech gossips keep regurgitating every press release, as if its something important. Luckily at age 77 he won’t be around much longer to annoy like a buzzing housefly.

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