Carl Icahn Says That Apple Should Do A $150 Billion Stock Buyback
Carl Icahn is pushing to have Apple buy $150 billion back of their own stock. Icahn wrote about this suggestion on Twitter after also mentioning that he met with CEO Tim Cook last night. He will be meeting with Cook again in the next three weeks.
Apple is already going to do some stock buybacks, but Icahn wants it to be much larger. Apple launched a $10 billion program last year and increased it to $50 billion this past spring. Apple also issued dividends under Cook’s leadership.
Had a cordial dinner with Tim last night. We pushed hard for a 150 billion buyback. We decided to continue dialogue in about three weeks.
— Carl Icahn (@Carl_C_Icahn) October 1, 2013
Apple’s stock has dropped from around $700 to about $500 because investors are concerned about a lack of innovation under Cook. Icahn has been considered a “corporate raider” and attempted to take over Dell Inc., but Michael Dell and Silver Lake convinced shareholders to pursue their own deal instead.
Carl Icahn bought $1 billion worth of Apple stock and believes that the company is undervalued.
[Source: VentureBeat]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry