Carl Icahn says he'll consider shareholder proxy vote if Apple rejects his buyback plan
Appearing in a television interview Thursday afternoon, billionaire investor Carl Icahn said that he would consider, but will not commit to, a possible proxy vote to force Apple executives to buy back more of their own shares, if they don't agree to his proposal.
Icahn made it clear in an interview with CNBC that he isn't "going away," and plans to continue his efforts to persuade Apple executives to spend $150 billion on a share buyback. Icahn made a splash earlier Thursday when he published a letter he wrote to Apple Chief Executive Tim Cook encouraging him to consider issuing an immediate tender offer, borrowing money to buy back shares at a price of $525 from investors.
When asked whether he is planning to push for a proxy vote to drive his agenda, Icahn said he would consider it if his proposal is rejected.
"We'll test the waters and see if the shareholders want us to do it and want us to win," he said.
Icahn said he believes Cook is doing a good job as CEO, and shouldn't be replaced. He wouldn't say the same for the rest of the Apple Board of Directors, however.
The billionaire investor believes that a change may be necessary on the board, and he'd prefer to see someone with an investor's point of view providing input at the company. However, Icahn said he's not interested in such a role.
"I really don't want to spend the time to go on a board at this point," he said.
Icahn expects to hear from Cook after Apple reports its quarterly earnings next Monday. He said the two agreed to speak again after Apple's September earnings report when they met for dinner in New York late last month.
But Icahn stands by his belief that Apple has too much money in the bank, and that letting that money sit is a disservice to investors.
"It's ludicrous to say that they need $150 billion sitting in a bank somewhere in Europe to do innovation," he said.
Apple is currently in the process of spending $100 billion through 2015 on share buybacks, as well as dividend payouts. But Icahn believes Apple should increase its share buyback program and spend $150 billion on its share buyback, and he'd like to see that sum spent immediately.
Icahn made it clear in an interview with CNBC that he isn't "going away," and plans to continue his efforts to persuade Apple executives to spend $150 billion on a share buyback. Icahn made a splash earlier Thursday when he published a letter he wrote to Apple Chief Executive Tim Cook encouraging him to consider issuing an immediate tender offer, borrowing money to buy back shares at a price of $525 from investors.
When asked whether he is planning to push for a proxy vote to drive his agenda, Icahn said he would consider it if his proposal is rejected.
"We'll test the waters and see if the shareholders want us to do it." - Carl Icahn on the prospect of a proxy vote.
"We'll test the waters and see if the shareholders want us to do it and want us to win," he said.
Icahn said he believes Cook is doing a good job as CEO, and shouldn't be replaced. He wouldn't say the same for the rest of the Apple Board of Directors, however.
The billionaire investor believes that a change may be necessary on the board, and he'd prefer to see someone with an investor's point of view providing input at the company. However, Icahn said he's not interested in such a role.
"I really don't want to spend the time to go on a board at this point," he said.
Icahn expects to hear from Cook after Apple reports its quarterly earnings next Monday. He said the two agreed to speak again after Apple's September earnings report when they met for dinner in New York late last month.
I really don't want to spend the time to go on a board at this point." - Icahn
But Icahn stands by his belief that Apple has too much money in the bank, and that letting that money sit is a disservice to investors.
"It's ludicrous to say that they need $150 billion sitting in a bank somewhere in Europe to do innovation," he said.
Apple is currently in the process of spending $100 billion through 2015 on share buybacks, as well as dividend payouts. But Icahn believes Apple should increase its share buyback program and spend $150 billion on its share buyback, and he'd like to see that sum spent immediately.
Comments
"The billionaire investor believes that a change may be necessary on the board, and he'd prefer to see someone with an investor's point of view providing input at the company. However, Icahn said he's not interested in such a role."
Yeah, no. How the **** would anyone with an "investors point of view" actually have the capability to provide input that is constructive to Apple's long-term success and product quality? What a mind-numbingly short-sighted scum bag this guy is. Apple didn't get to where it is today by following the "investor" point of view. It got to where it is by ignoring almost all of it.
your first sentence pretty much sums up my sentiments, so i'll defer to your post.
icahn should know this: i'm a long-time aapl holder and i support tim and the board.
That's two of us and I am sure you are correct, he'd be slaughtered in a vote.
In other news, Apple has responded to Icahn’s demands by taking the company private. Reports are coming in that paper representations of each of Icahn’s shares were mailed to his door this morning, each stamped with a hand, its middle finger extended.
Investors point of view! Talk about the best way to ruin a company built on innovation and making products.
Wall Street has never made anything. They just play with paper and screw people.
has apple's board ever had a decision overturned by its shareholders?
if not, why would anyone expect it to change now?
This is why I wish Apple was private in the first place. This dipshit couldn't care any less about Apple as a company. He just wants Apple to make him and his rich friends more money.
Investors don't know, or understand how Apple works as a company. This is what I hate. They rely on people with no facts what so ever even though they claim they have the facts. We see this here time and time again, nearly everyday with some stupid prediction from some "expert" thats completely way off.
Apple knows what its doing. It didn't get there out of the blue. It has good people top to bottom to run the company and its finances.
That's two of us and I am sure you are correct, he'd be slaughtered in a vote.
Make that 3
In other news, Apple has responded to Icahn’s demands by taking the company private. Reports are coming in that paper representations of each of Icahn’s shares were mailed to his door this morning, each stamped with a hand, its middle finger extended.
I and I think many many other people wish this could happen. Apple doesn't need to be public. There's too much BS going on.
If that is what Tim and his team think I'm all in, if not I go with the sage and 'pro Apple' centric views rather than a self interested corporate raider. You really want for Apple, arguably the best run
techcompany in history to acquiesce to the desires of one, and provably self interested, man? If he were to win this, what would he demand next?what a tool!
"Investor point of view" by which he means short term, quick-buck, future-be-damned, vampire vulture? No thanks Mr Icahn. Go back to the subterranean vent that spat you out.
IBM has purchased over 45% of their shares since 1995. The last 5 years the stock has appreciated 250% despite having flat revenue and earnings. Buybacks executed at the right share price is an excellent way to increase shareholder value. In fact Warren Buffet personally told Steve Jobs to purchase shares if he thought Apple was being undervalued.
IBM and GE are two examples cited in favour of share repurchasing. But what if IBM sent the roughly $100B (more?) on dividends instead? Naysayers would bring up the tax angle. Furthermore, the problem with share repurchase is that natural market vacillations makes it real hard to objectively nail down one's true capital gain.
IBM, as you mentioned, needed to do something because of relatively meagre growth in revenue and earnings (not at all flat as you stated). Is Apple in such a situation?
Go beyond IBM and GE, how many clear success stories can one name? Dell? No. Microsoft? No. HP?
what a tool!
He's a brilliant investor, no tool at all. I don't like him either. But let's get our invectives straight
so...basically, it's extortion.
Which has worked so well for him.
This is why it will be fascinating to watch - world's most successful tech company in the last 10 years v. world's most successful vulture investor.