“Carl Icahn has been pushing Apple CEO Tim Cook to use the company’s $158 billion war chest to buy back company shares, and hopefully substantially boost its stock price,” Mark Berniker reports for CNBC. “But not every Apple shareholder agrees with that strategy, and at least one big one doesn’t appreciate Icahn’s activism.”
“‘It’s the tail wagging the dog. [Icahn’s] recent letter was rambling and contradictory,’ says Anne Simpson, senior portfolio manager of investments and director of corporate governance for the California Public Employees’ Retirement System,” Berniker reports. “CalPERS is the largest pension fund in the United States with more than $285 billion in assets under management, and it owns close to $1.6 billion in Apple shares.”
“‘There are owners, raiders and traders. We’re an owner and have been of Apple for a very long time. Mr. Icahn is a raider and he’s an echo chamber who engages in megaphone diplomacy,’ Simpson added,” Berniker reports. “CalPERS is not the only Apple shareholder who’s doesn’t think Ichan’s call for a buyback is good for the company, or its stock. ‘It’s not always in the shareholders best interest for the cash hoard to be returned to shareholders,’ said Matt Patsky, CEO of Trillium Asset Management, which owns 44,000 Apple shares worth more than $20 million. ‘Apple is resistant to depleting its cash reserve and they have that right,’ he said.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]