Carl Icahn: Apple ‘doing great disservice to shareholders,’ ups AAPL investment to $3 billion

“Following a precatory proposal from billionaire investor and Apple shareholder Carl Icahn urging Apple to vote on a larger buyback, Icahn today announced on Twitter that he thinks Apple ‘is doing great disservice to shareholders by not having markedly increased its buyback,'” Jordan Kahn reports for 9to5Mac.

“He also said that he would soon send Apple another in-depth letter regarding his proposals and confirmed that he has purchased another $500 million in Apple shares bringing his total investment to $3 billion,” Kahn reports. “Icahn has been proposing a larger buyback from Apple of around $150 billion since first announcing back in August that he had taken ‘a large position’ in the company.”

Read more in the full article here.

Related articles:
Apple may do more buybacks, but not on Icahn’s timetable; Cook likely to choose debt over U.S. repatriation taxes – December 30, 2013
Apple urges shareholders vote against Icahn buyback proposal – December 27, 2013
Apple urgently needs increase debt to raise earnings per share by 13.8% – November 22, 2013
RBC sees room for Apple to take on another $55 billion in debt – August 15, 2013
Apple CEO Cook makes no apology for company’s tax strategy – May 22, 2013

29 Comments

  1. If he reckons Apple is doing such a bad job, why does Icahn keep buying more stock ? The reason is that he knows it’s a tremendous investment, but he is so greedy that he wants to try and squeeze even more out of Apple before he sells up and moves on to another company.

    Tim Cook has stated his potion both publicly and privately to Icahn. Icahn can either buy the stock on those terms, or sell up and buy other shares instead. Either way, Apple won’t be making any massive change to the amount of cash being distributed to shareholders.

  2. As usual, the CNBC gang entertained Icahn’s notion and joined in to bemoan Apple’s large pile of cash not doing anything and the dictatorial and intransigent B.O.D.

    At least Pete Najarian brought up the fact that a sizeable portion of the money is locked overseas by high U.S. tax rates.

  3. Look at the recent stock performance of no profit Amazon compared to huge profit Apple. Look at GOOG stock cleaning APPL’s clock. He may be a great manager, but this CEO has no salesmanship to help excite public perception of the stock. It seems to me the board can make some moves to be a little more to be pro-shareholder and it wouldn’t hurt the company one bit. That amount of cash doing nearly nothing is ridiculous.

  4. My issue isn’t that they should increase the buyback but rather that they could have bought up much more shares if they were more aggressive when the price was below $400. Perhaps that just wasn’t possible (i.e. maybe the institutions just wouldn’t let that happen by bringing up the price again). I have no problem with an increased buyback plan, as long as they don’t actually execute it. They could always have the plan in place in case another 2012-2013 happens again.

    In any case, I trust Oppenheimer and Luca Maestri with the use of the cash.

  5. One more proof that being a billionaire doesn’t make of you a smart human!
    Actually, when the only aim in life is to make more and more money, you hardly can still call yourself a “human”…

  6. What’s good for the corporate raiders is never good for the company or the small shareholder. I think it’s hilarious that Mr. Icahn isn’t getting his way and crying to the vapid news readers like a spoiled child.

    Keep up the good work, Tim Cook.

  7. This is nothing but a money grab. A short term investment and an attempt to suck cash out of Apple. It is only a short sighted vampire investor that sees cash as a bad thing for a company to have. As a long term Apple investor the cash stockpile adds security, it has basically made the company recession proof and allowed them to innovate even during an economic down turn.

    Long term Investor = Support and grow and all benefit

    Icahn = Rape and Pillage all for me, who cares what happens after I got mine.

  8. OPEN NOTE TO Carl Ichan:

    Maybe Apple should increase its buyback strategy and repurchase all of your shares for 50 cents on the dollar. Take it or leave it kind of offer. I know they can’t do it but you are a worthless bag of hot air who isn’t worth the air you breathe.

    Not that I don’t think highly of you. Well, actually I don’t. I’ve seen what you did to a group of very close friends in UT and AZ with your self-centered shenanigans.

    Keep beotching. You are proving who you really are.

    YOU are a disservice to humanity.

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