Carl Icahn says he'll consider shareholder proxy vote if Apple rejects his buyback plan

Posted:
in AAPL Investors edited January 2014
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


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.
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Comments

  • Reply 1 of 131
    slurpyslurpy Posts: 5,107member
    What a piece of shit this fuckwad is.

    "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.
  • Reply 2 of 131
    I'm a shareholder and I'd vote against it. I'm sure I'm not alone. I trust the board.
  • Reply 3 of 131
    poochpooch Posts: 768member
    slurpy wrote: »
    What a piece of shit this fuckwad is.

    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.
  • Reply 4 of 131
    MacProMacPro Posts: 18,012member
    I'm a shareholder and I'd vote against it. I'm sure I'm not alone. I trust the board.

    That's two of us and I am sure you are correct, he'd be slaughtered in a vote.
  • Reply 5 of 131
    I don't like Carl Icahn. And I believe share buybacks have historically shown to have short term benefits. But I am intrigued by this confrontation. Let's see how it plays out.
  • Reply 6 of 131
    deleted
  • Reply 7 of 131

    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.

  • Reply 8 of 131
    Quote:
    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.

    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.

  • Reply 9 of 131

    has apple's board ever had a decision overturned by its shareholders?

     

    if not, why would anyone expect it to change now?

  • Reply 10 of 131
    macxpressmacxpress Posts: 4,761member

    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. 

  • Reply 11 of 131
    Quote:

    Originally Posted by digitalclips View Post





    That's two of us and I am sure you are correct, he'd be slaughtered in a vote.

    Make that 3

  • Reply 12 of 131
    macxpressmacxpress Posts: 4,761member
    Quote:

    Originally Posted by Tallest Skil View Post

     

    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. 

  • Reply 13 of 131
    MacProMacPro Posts: 18,012member
    sog35 wrote: »
    Bravo.  I have a small stake (300 shares) and I'll vote yes to $150B buyback.

    Let the shareholders decide.

    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 tech company 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?
  • Reply 14 of 131
    so...basically, it's extortion.
  • Reply 15 of 131

    what a tool! 

  • Reply 16 of 131
    tundraboytundraboy Posts: 1,609member

    "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.

  • Reply 17 of 131
    Quote:

    Originally Posted by sog35 View Post

     

     

    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?

  • Reply 18 of 131
    Quote:

    Originally Posted by Richard Getz View Post

     

    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 :)

  • Reply 19 of 131
    If you're really looking around for shareholder reaction, Carl, here's one. Keep your filthy short-term gain investment hands off Apple. Get a real job somewhere instead of trying to wring a nickel out of other people's ingenuity and creativity. Leach.
  • Reply 20 of 131
    Quote:

    Originally Posted by mac_dog View Post



    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.

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