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

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

  1. MacRumors macrumors bot


    Apr 12, 2001

    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. Dreamer2go macrumors 6502a

    Jun 23, 2007
  3. Pheo macrumors regular

    Jun 13, 2011
    Oh good, another investment banker who thinks he knows what he's doing! great!
  4. OceanView, Oct 24, 2013
    Last edited: Oct 24, 2013

    OceanView macrumors 65816

    Sep 16, 2005
    Stock Manipulation?

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

    Jul 11, 2008
  6. Return Zero, Oct 24, 2013
    Last edited: Oct 24, 2013

    Return Zero macrumors 6502

    Return Zero

    Oct 2, 2013
  7. Rogifan macrumors P6


    Nov 14, 2011
    I hope Tim and Peter were laughing as they read this letter.
  8. anzio macrumors 6502

    Dec 5, 2010
  9. NewbieCanada macrumors 68030

    Oct 9, 2007
    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.

    Attached Files:

  10. pasqualino macrumors member

    Oct 4, 2013
    who does he think he is? abominable! do what you want, tim.
  11. DipDog3 macrumors 65816


    Sep 20, 2002
    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...
  12. run1976 macrumors member

    Feb 4, 2010
    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.
  13. troop231 macrumors 603

    Jan 20, 2010

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

    Jun 5, 2001
    Miami Beach
    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.
  15. atari1356 macrumors 68000


    Feb 27, 2004
    I'm pretty sure that Apple has other things it wants to do with (at least some of) that $147 billion.
  16. 2bikes macrumors 6502

    Mar 9, 2012
    Didn't he sell his Netflix the other day? He must have put that money to Apple.
  17. NutsNGum macrumors 68030


    Jul 30, 2010
    Glasgow, Scotland
    If you have 2.5 Billion dollars and you want more, instantly, does that make you a douchebag?
  18. Naaaaak macrumors regular

    Mar 26, 2010
    "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.
  19. run1976 macrumors member

    Feb 4, 2010
    Money does certainly not protect you from being a douchebag.
  20. WBRacing macrumors 6502a


    Nov 19, 2012
    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.
  21. DipDog3 macrumors 65816


    Sep 20, 2002
    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.
  22. lcmazza macrumors regular

    Apr 3, 2012
    True Story:

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

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

    Mar 26, 2010
    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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