Carl Icahn Increases Apple Stake to $2.5 Billion, Requests Immediate $150 Billion Stock Buyback

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Oct 24, 2013.

  1. macrumors bot

    MacRumors

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    Billionaire activist investor Carl Icahn has published a new letter sent to Apple CEO Tim Cook, addressing his thoughts on an enhanced stock buyback plan for the company. The letter, released on Icahn's new Shareholders' Square Table website and republished by StreetInsider, also notes that Icahn now holds $2.5 billion in Apple stock, having increased his position by over 20% since he met with Cook at the very end of last month.

    As he noted in his tweet following the meeting with Cook, Icahn is requesting that Apple undertake an "immediate" $150 billion buyback of its stock, arguing that it would be a terrific use of cash and debt given his belief that Apple's stock is currently severely undervalued. Such a program would mark a major expansion of the current program designed to repurchase $60 billion worth of stock over three years.
    Icahn lays out his expectations for earnings per share and stock value growth that could be expected from such a move, and notes that Apple could easily manage debt payments if it were to finance the entire $150 billion buyback with debt at 3% interest.
    Finally, Icahn notes that he would not participate in the buyback he proposes, indicating that there "nothing short term about [his] intentions" as he attempts to convince Apple and his investors that he is not simply pushing an agenda serving his own immediate interests without regard for the company's long-term health.

    Article Link: Carl Icahn Increases Apple Stake to $2.5 Billion, Requests Immediate $150 Billion Stock Buyback
     
  2. macrumors 6502a

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  3. macrumors 6502a

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  4. macrumors regular

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    #4
    Oh good, another investment banker who thinks he knows what he's doing! great!
     
  5. OceanView, Oct 24, 2013
    Last edited: Oct 24, 2013

    macrumors 65816

    OceanView

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    #5
    Stock Manipulation?

    This makes Gordon Gecko look like a back seat investor.
     
  6. macrumors 601

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  7. Return Zero, Oct 24, 2013
    Last edited: Oct 24, 2013

    macrumors newbie

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  8. macrumors G5

    Rogifan

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    #8
    I hope Tim and Peter were laughing as they read this letter.
     
  9. macrumors regular

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  10. macrumors 68030

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    #10
    Earlier this week he sold half his stake in Netflix and drove the price down from $390 a share to $320 a share in a morning.
     

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  11. macrumors member

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    #11
    who does he think he is? abominable! do what you want, tim.
     
  12. macrumors 6502a

    DipDog3

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    #12
    Sorry but Apple has a Market Cap of $500B, they won't say it, but they don't really care what someone with $2.5B of shares has to say about how to run the company.

    I would ignore him, just look what Activist Investors did for JCPenny...
     
  13. macrumors member

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    #13
    Tim Cook: Certainly, you spent 2.5 Billion 5 minutes ago, let us reward that with a 150 billion dollar payout... NOT

    What a douche. If Cook caters to this fool he should really be replaced. I do not care if the 5c or other products are duds. Not every product can be a smash hit. But jeopardizing the company because of a bullying investor is something no CEO should ever do. So, man up Cook and showIcahn the door.
     
  14. macrumors 603

    troop231

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    #14
    [​IMG]

    This Carl guy will be the end of Apple if he has his ways.
     
  15. macrumors regular

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    #15
    It should be called illegal what he is doing. Playing a public charade with a company to use all its cash reserves to buyback stocks, that he owns and knows would make him a fast buck.

    Apple did just fine before these banksters came crawling out of their nests.
     
  16. macrumors 68000

    atari1356

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    #16
    I'm pretty sure that Apple has other things it wants to do with (at least some of) that $147 billion.
     
  17. macrumors 6502

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    #17
    Didn't he sell his Netflix the other day? He must have put that money to Apple.
     
  18. macrumors 68030

    NutsNGum

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    #18
    If you have 2.5 Billion dollars and you want more, instantly, does that make you a douchebag?
     
  19. macrumors regular

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    Mar 26, 2010
    #19
    "Spend *all* of your money on shares so I can get rich quick."

    That Tim Cook even entertains this guy with a meeting is a waste of time.

    What do you think happens when it doesn't happen? He sells and converts those long positions to shorts? He tries to rally a bunch of other shareholders to his cause? It will be fun watching this blowhard get trolled.
     
  20. macrumors member

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    #20
    Money does certainly not protect you from being a douchebag.
     
  21. macrumors regular

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    #21
    Like any speculator, he wants a good return on his investment. His method seems to be to load up and then use his clout to publicly drive the price up. What do people think will happen when he sees the price hit anywhere near the dizzy heights it did last year? It's like a time bomb, waiting to blow.

    Whilst he is roaming around any stock, I wouldn't go near it with bargepole.
     
  22. macrumors 6502a

    DipDog3

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    #22
    Yea, this is all Carl wants. Bump the share price up as quick as possible and take his profits. This whole charade in no way benefits Apple, their employees, or their customers.
     
  23. macrumors regular

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    #23
    True Story:

    "Rich old man has nothing else better to do than posing with CEO celebs and asking for costly 150 billion dollar tips."
     
  24. macrumors newbie

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    Aug 31, 2012
    #24
    Who does this son of a bitch think he is? Request? Go to hell! Go **** this son of a bitch.
     
  25. macrumors regular

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    Mar 26, 2010
    #25
    In doing so he created a deal for long-term Netflix investors to buy more shares at a lower price. Any disruption he creates will be temporary.
     

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