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Investor Carl Icahn to Have Dinner With Tim Cook, 'Magnitude' of Share Buyback to Be Discussed

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macrumors bot
Original poster
Apr 12, 2001
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Activist investor Carl Icahn, who now discloses material information via Twitter, tweeted today that he and Apple CEO Tim Cook will be having dinner together in September to discuss Icahn's desire for Apple to increase its share buyback.

Icahn recently purchased more than $1 billion in Apple stock and believes the company is 'extremely undervalued'.
Spoke to Tim. Planning dinner in September. Tim believes in buyback and is doing one. What will be discussed is magnitude.
Earlier this year, Apple increased its capital return program to more than $100 billion via increased share buybacks and dividends, and issuing bonds for the first time in over a decade.

Article Link: Investor Carl Icahn to Have Dinner With Tim Cook, 'Magnitude' of Share Buyback to Be Discussed
 

Squilly

macrumors 68020
Nov 17, 2012
2,260
4
PA
Damn. And someone paid more than $500,000 just to have a cup of coffee with him let alone dinner.
 
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mtneer

macrumors 68030
Sep 15, 2012
2,968
2,272
Damn. And someone paid more than $500,000 just to have a cup of coffee with him let alone dinner.

Well.. this guy paid a BILLION!! That's quite a jump from coffee to dinner... :D
 
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alms

macrumors member
Oct 16, 2003
63
22
Boston
Icahn is not our friend

You realize, I hope, that Icahn is speaking publicly like this to try to force Apple to increase the buyback.

He is not a friend to Apple. Icahn has purchased a billion dollars worth of Apple stock. He wants the value of that stock to increase by some significant percentage (20%, 50%) very quickly, so he can sell it and make a buck. If things don't go his way, he'll do anything to Apple to force the issue. That's how he operates. He's not about creating long-term value or companies that are healthy over the long term.

By publicly creating the hope and expectation of a bigger buyback, he increases pressure on Apple to make a bigger buyback, whether or not that's fundamentally good for the company. Icahn creates the possibility of shareholder discontent in the absence of an increased buyback.
 
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racer1441

macrumors 68000
Jul 3, 2009
1,786
425
I cannot fathom wanting to do these things over dinner. Why eat at these things. That always bugs me.
 
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keysofanxiety

macrumors G3
Nov 23, 2011
9,534
25,271
Well, IMHO he's right about Apple stock being undervalued.

And I can't comment on how he chooses to spend his money, because I'm fairly short of having $1 billion burning a hole in my pocket. :D
 
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GSPice

macrumors 68000
Nov 24, 2008
1,632
89
Icahn has influence?

I guess it makes sense..

 
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herbapou

macrumors member
Dec 20, 2011
99
0
right in the middle of a Nasdaq system failure... imo they will halt Apple until tomorrow on fear of huge volume at open this afternoon.
 
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Dwalls90

Contributor
Feb 5, 2009
5,012
2,998
You realize, I hope, that Icahn is speaking publicly like this to try to force Apple to increase the buyback.

He is not a friend to Apple. Icahn has purchased a billion dollars worth of Apple stock. He wants the value of that stock to increase by some significant percentage (20%, 50%) very quickly, so he can sell it and make a buck. If things don't go his way, he'll do anything to Apple to force the issue. That's how he operates. He's not about creating long-term value or companies that are healthy over the long term.

By publicly creating the hope and expectation of a bigger buyback, he increases pressure on Apple to make a bigger buyback, whether or not that's fundamentally good for the company. Icahn creates the possibility of shareholder discontent in the absence of an increased buyback.

Exactly. There's a reason he's renowned as being controversial.

There must be SEC limitations in place here. Shareholders shouldn't have manipulation ability to change stock price in a volatile sense such as this.
 
Comment

IJ Reilly

macrumors P6
Jul 16, 2002
17,889
1,478
Palookaville
You realize, I hope, that Icahn is speaking publicly like this to try to force Apple to increase the buyback.

He is not a friend to Apple. Icahn has purchased a billion dollars worth of Apple stock. He wants the value of that stock to increase by some significant percentage (20%, 50%) very quickly, so he can sell it and make a buck. If things don't go his way, he'll do anything to Apple to force the issue. That's how he operates. He's not about creating long-term value or companies that are healthy over the long term.

By publicly creating the hope and expectation of a bigger buyback, he increases pressure on Apple to make a bigger buyback, whether or not that's fundamentally good for the company. Icahn creates the possibility of shareholder discontent in the absence of an increased buyback.

The rest of us buy Apple stock to frame it and put it on our walls.

Apparently.
 
Comment

thekingofnerds

macrumors regular
Jun 26, 2013
153
0
Exactly. There's a reason he's renowned as being controversial.

There must be SEC limitations in place here. Shareholders shouldn't have manipulation ability to change stock price in a volatile sense such as this.

Too bad any limitations won't matter.

If the SEC did their job Madoff would never have run a 50 billion dollar ponzi scheme, for over a decade, after being warned repeatedly about it.

The SEC is a joke on wall-street.
 
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donutbagel

macrumors 6502a
Jun 9, 2013
932
1
Huh ? How is he asking Apple to raise the price ?

"Icahn's desire for Apple to increase its share buyback." Share buyback => raised price. Either he wants to make a quick buck by selling soon, as some have said here, or he genuinely thinks that Apple is undervalued and can prosper long-term.

I had no idea what his plan was, but now that he's talking with Tim Cook to buy back shares, I'm getting suspicious.
 
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