Apple CEO Tim Cook Is Going To Meet With Carl Icahn Next Week
Billionaire investor Carl Icahn will be meeting with Apple CEO Tim Cook next week, according to sources with AllThingsD. Icahn recently bought $1.5 billion worth of Apple stake. The meeting is expected to happen on Monday. The primary topic of discussion will be Apple’s share buyback program.
Icahn believes that the Apple stock is extremely undervalued. He believes that the company should increase their buyback authorization beyond the current buyback plan. If Apple buys back shares now by borrowing $150 billion at a 3% interest rate to fund the buyback, the company’s stock would rise above the $400-something that they are trading for.
“If Apple does this now and earnings increase at only 10 percent, the stock — even keeping the same multiple currently — should trade at $700 a share,” stated Icahn in an interview with Reuters.
Apple believes that their current buyback program is just right and likely Tim Cook cannot be convinced by Carl Icahn. Icahn has been very influential at other tech companies like Yahoo! and Motorola though.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry