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Carl Icahn files Apple shareholder proposal seeking increase in share buyback program

post #1 of 69
Thread Starter 
Billionaire investor and financial activist Carl Icahn has filed a shareholder proposal with Apple, seeking support for spending even more of the company's cash reserves on its own shares.

Icahn


Icahn filed the proposal on Nov. 26, three days before the deadline for the company's next annual shareholder meeting, the investor revealed to Time. The filing is a "precatory proposal," which means that Apple's board of directors will not be required to act on it, even if a majority of shareholder vote in favor of the proposal.

Apple confirmed that Icahn made the filing, and in a statement said the company is "actively seeking" input from shareholders on its current $100 billion share repurchase authorization. The company also said that any changes to its current program will be announced in the "first part of 2014."

"Apple is not a bank." - Carl IcahnThe filing by Icahn comes as no surprise, as he indicated in October that he would consider going as far as a shareholder proxy vote if Apple were to reject his buyback plan. Icahn has been publicly pushing for Apple to spend the entirety of its $150 billion in cash and reserves on its own stock.

For months now, Icahn has continuously spoken to the press in an effort to drum up support for his initiative. His interest in the company, and stature as a Wall Street icon, have even garnered him private meetings with Apple Chief Executive Tim Cook and Chief Financial Officer Peter Oppenheimer.

Icahn has been careful to note that he believes Cook has done an excellent job as CEO, a stance he reiterated once again in his interview with Time. However, when it comes to financial matters, he believes the company is mismanaging its massive cash hoard.

"Apple is not a bank," he said.

As of the end of the fourth quarter of fiscal 2013, Apple held $148.6 billion in cash, with just $35.5 billion of that held domestically. The company has signaled that it has no plans to repatriate the overseas cash it holds at current tax rates.

Icahn revealed in October that he had at the time 4.7 million shares of AAPL stock, up from a previous total of 4 million. That would give him nearly $2.7 billion stake in the company at its current value.
post #2 of 69
Don't trust this man. He even looks shady.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #3 of 69
Carl can go off himself. Apple would be a fool to let this go Icahn's way.
post #4 of 69
"Apple is not a bank, so please give the money to me," said Ichan.
post #5 of 69

LOL.

 

Current buyback is already $60B

Does he want $50B more?

post #6 of 69
He's like a cockroach... you just can't get rid of him. Ugh.
post #7 of 69
This guy is going to get an heart attack any day now ... that 140 billion dollars of Apple is going to kill this guy!ROFLMAO

....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

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....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

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post #8 of 69

Current buyback of $60B is up to 12/31/15

 

Carl wants Apple to buyback $50B in 2014.  I think they already bought back about $20B.  So basically he asking for Apple to accelerate buyback to 2014 and add an additional $10B.

 

Not unreasonable at all

 

It would cost Apple almost nothing to do this.  The interest on the Bonds would be less than the dividends they save.  And it would be smart to do it in 2014 while rates are still low and Apple is still undervalued. 

post #9 of 69
Carl "take the money and run" Icahn.
post #10 of 69
Why won't this asshole JUST DIE?
post #11 of 69
Ichan clearly does not have Apple's best interests in mind. He can go FOAD.
post #12 of 69
Quote:
Originally Posted by sog35 View Post

Current buyback of $60B is up to 12/31/15

Carl wants Apple to buyback $50B in 2014.  I think they already bought back about $20B.  So basically he asking for Apple to accelerate buyback to 2014 and add an additional $10B.

Not unreasonable at all

It would cost Apple almost nothing to do this.  The interest on the Bonds would be less than the dividends they save.  And it would be smart to do it in 2014 while rates are still low and Apple is still undervalued. 

It's all over my head but If that's the case, Apple probably made that much while I read this post. 1smile.gif
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Enjoying the new Mac Pro ... it's smokin'
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post #13 of 69

Icahn’t believe he won’t shut up.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #14 of 69
Why doesn't he just get it over with: buy the company and sell off its assets. To him, Apple is just a play. Who cares if it goes away as long as his pockets are full.
A.k.a. AppleHead on other forums.
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A.k.a. AppleHead on other forums.
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post #15 of 69
Why would apple do something that sets Icahn up to sell all his stocks?..
post #16 of 69
Quote:
Originally Posted by Ireland View Post

He even looks shady.

What does that mean? What does "shady" look like?

post #17 of 69
Eff Icahn, but I wouldn't mind Apple giving me a larger dividend if they refuse to make some decent acquisitions to boost revenue. It's going to be very hard to get fair shareholder value and a better share price, but Apple can easily boost dividends and it might help pull in a few more institutional investors as a result. Apple will continue to be a tech laggard for the rest of 2013 and with all that cash Apple is sitting on, there's really no reason at all for shareholders to have to put up with such nonsense.
post #18 of 69
Quote:
Originally Posted by Robin Huber View Post

Why doesn't he just get it over with: buy the company and sell off its assets. To him, Apple is just a play. Who cares if it goes away as long as his pockets are full.

yeah.. his pockets are so empty.

"Building for the future?! They should be running around reacting to the present!" -John Moltz
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"Building for the future?! They should be running around reacting to the present!" -John Moltz
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post #19 of 69
Quote:
Originally Posted by anantksundaram View Post

What does that mean? What does "shady" look like?

Isn't that an idiom in the USA? Means looks dodgy .... 1biggrin.gif
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post #20 of 69
Quote:
Originally Posted by Constable Odo View Post

Eff Icahn, but I wouldn't mind Apple giving me a larger dividend if they refuse to make some decent acquisitions to boost revenue. It's going to be very hard to get fair shareholder value and a better share price, but Apple can easily boost dividends and it might help pull in a few more institutional investors as a result. Apple will continue to be a tech laggard for the rest of 2013 and with all that cash Apple is sitting on, there's really no reason at all for shareholders to have to put up with such nonsense.

I'd like to see dividends boosted proportionally more for the length of time held!
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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post #21 of 69
Quote:
Originally Posted by Constable Odo View Post

Eff Icahn, but I wouldn't mind Apple giving me a larger dividend if they refuse to make some decent acquisitions to boost revenue. It's going to be very hard to get fair shareholder value and a better share price, but Apple can easily boost dividends and it might help pull in a few more institutional investors as a result. Apple will continue to be a tech laggard for the rest of 2013 and with all that cash Apple is sitting on, there's really no reason at all for shareholders to have to put up with such nonsense.

And thank god Apple turns a blind eye to dumb dip shit investors like you, because you don't care about anything except the bottom line on your monthly statement. With people like you running the show, Apple would've reached insolvency and declared bankruptcy back in 1997!

post #22 of 69
Quote:
Originally Posted by Constable Odo View Post

Eff Icahn, but I wouldn't mind Apple giving me a larger dividend if they refuse to make some decent acquisitions to boost revenue. It's going to be very hard to get fair shareholder value and a better share price, but Apple can easily boost dividends and it might help pull in a few more institutional investors as a result. Apple will continue to be a tech laggard for the rest of 2013 and with all that cash Apple is sitting on, there's really no reason at all for shareholders to have to put up with such nonsense.

If you are an unsatisfied Apple shareholder, no one is stopping you from selling your Apple stock! You could always invest in another company to show Apple how unsatisfied it has made you.
post #23 of 69
Tech laggard for rest of 2013 -- how about for as long as they continue issuing that dividend. Ba ha ha!
post #24 of 69
Quote:
Originally Posted by Constable Odo View Post

Eff Icahn, but I wouldn't mind Apple giving me a larger dividend if they refuse to make some decent acquisitions to boost revenue. It's going to be very hard to get fair shareholder value and a better share price, but Apple can easily boost dividends and it might help pull in a few more institutional investors as a result. Apple will continue to be a tech laggard for the rest of 2013 and with all that cash Apple is sitting on, there's really no reason at all for shareholders to have to put up with such nonsense.

Just...go...away...

I'm saying that as an very happy AAPL owner.

post #25 of 69
Carl knew he had lost with the $150 billion buy back demand. In an attempt to save face, he changed course by $100 billion and decided to force a shareholder vote. A $50 billion demand is much more palatable to many people. Still, I see Carl as being greedy while not caring about Apple's long-term financial health.
post #26 of 69
Quote:
Originally Posted by digitalclips View Post

I'd like to see dividends boosted proportionally more for the length of time held!

That would be illegal under US law. Dividends can vary only by class of shares.

 

Well, I suppose someone could try classifying shares based on length of ownership....  that would be novel!

post #27 of 69
Apple should make an immediate buy back of $2.7 billion of shares from Icahn.
post #28 of 69
Sooooo%u2026 this is how I would see this playing out:

1. Apple gives in to Icahn's demand
2. Positive gain in stock price allows Icahn to sell with a nice hefty profit.
3. Stock returns to current value after he sells out.

In the end, NOTHING gained for all the average investors.

So why should Apple give into a pig (greedy) investor looking for some quick action?
post #29 of 69
Quote:
Originally Posted by anantksundaram View Post

That would be illegal under US law. Dividends can vary only by class of shares.

Well, I suppose someone could try classifying shares based on length of ownership....  that would be novel!

Not being serious, I was just thinking selfishly as a long time holder but it would certainly reward loyalty wouldn't it?
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Been using Apple since Apple ][ - Long on AAPL so biased
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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post #30 of 69

> ahem <

 

Boo, Hiss!

 

There, I voted my shares.

 

The man cares only about the short term profit and then he is gone. 

post #31 of 69

That picture of him just looks weird, kind of has this puppy dog dumb look on his face, kind of where are the squirrels 

post #32 of 69
Quote:
Originally Posted by Tallest Skil View Post

Icahn’t believe he won’t shut up.

Icahn - lol
post #33 of 69
Quote:
Originally Posted by sog35 View Post

Current buyback of $60B is up to 12/31/15

Carl wants Apple to buyback $50B in 2014.  I think they already bought back about $20B.  So basically he asking for Apple to accelerate buyback to 2014 and add an additional $10B.

Not unreasonable at all

It would cost Apple almost nothing to do this.  The interest on the Bonds would be less than the dividends they save.  And it would be smart to do it in 2014 while rates are still low and Apple is still undervalued. 

Crazy Carl wants dividends and the buy back. So when Carl leaves after AAPL reaches his target price, Apple will still be in debt. No thanks.

I, for one, vote Eff off on his proposal.

Side note: why does anyone still read posts by a concern troll.
post #34 of 69
Quote:
Originally Posted by sog35 View Post
 

Current buyback of $60B is up to 12/31/15

 

Carl wants Apple to buyback $50B in 2014.  I think they already bought back about $20B.  So basically he asking for Apple to accelerate buyback to 2014 and add an additional $10B.

 

Not unreasonable at all

 

It would cost Apple almost nothing to do this.  The interest on the Bonds would be less than the dividends they save.  And it would be smart to do it in 2014 while rates are still low and Apple is still undervalued. 

 

You do not have all the details. Apple has already committed to buying back 100 billion of its stock. This is on top of the dividend it pays. Carl wants Apple to commit to spending the rest of its war chest on buying back its shares. That is ridiculous fo a few reasons. Apple's war chest allows it to do things like go buy billion dollar companies, and prepay for components which gives it tremendous leverage. 

post #35 of 69
Quote:
Originally Posted by digitalclips View Post


I'd like to see dividends boosted proportionally more for the length of time held!

 

That's something that has always bothered me. For dividend stocks they typically set a date where an investor needs to be a "stock holder of record" just days before the payout. That should change. It effectively turns Apple stock into a slot machine.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #36 of 69

Icahn will only keep quite when Tim Cook releases iCan buyback :lol:

post #37 of 69
Quote:
Originally Posted by SpamSandwich View Post
 

 

That's something that has always bothered me. For dividend stocks they typically set a date where an investor needs to be a "stock holder of record" just days before the payout. That should change. It effectively turns Apple stock into a slot machine.

 

 

However, if you buy in and the stock drops in value more than your dividend payout you may end up holding longer than you want. 

post #38 of 69
Quote:
Originally Posted by sog35 View Post

Current buyback of $60B is up to 12/31/15

Carl wants Apple to buyback $50B in 2014.  I think they already bought back about $20B.  So basically he asking for Apple to accelerate buyback to 2014 and add an additional $10B.

Not unreasonable at all

It would cost Apple almost nothing to do this.  The interest on the Bonds would be less than the dividends they save.  And it would be smart to do it in 2014 while rates are still low and Apple is still undervalued. 

So much of this post is inaccurate I don't even know where to start. 1oyvey.gif
post #39 of 69

Meanwhile, Mr. Icahn was ousted from a video game company that he was somehow on the board of.

 

And that company has been very public about how happy it is that he is gone.

post #40 of 69
Quote:
Originally Posted by digitalclips View Post

Quote:
Originally Posted by anantksundaram View Post

That would be illegal under US law. Dividends can vary only by class of shares.

Well, I suppose someone could try classifying shares based on length of ownership....  that would be novel!

Not being serious, I was just thinking selfishly as a long time holder but it would certainly reward loyalty wouldn't it?

Actually, I think that's a GREAT idea. I am going to explore this some more with some corporate lawyers and CFOs to find out why (if?) this cannot be done.
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