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

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  • Reply 121 of 131
    crowleycrowley Posts: 10,453member
    Apple cannot own itself TS. That's a legal impossibility. As a company, [I]people[/I] need to own Apple. It's possible (though highly unlikely given the amount of money involved) that a person or group of people can buy enough to take complete control and delist the company from the NASDAQ, but there will [I]always[/I] be one or more shareholders. No one at Apple is rich enough to buy anywhere near a controlling share in Apple, let alone outright ownership.

    Stop posting nonsense now please.
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  • Reply 122 of 131
    Originally Posted by Crowley View Post

    Apple cannot own itself TS. That's a legal impossibility.

     

    Enough with the persnickety semantics. I don’t give a flying frick what your vendetta is.

     

    You know exactly what I mean when I say, “Apple should buy up all of its shares.”

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  • Reply 123 of 131
    Marvinmarvin Posts: 15,585moderator
    You know exactly what I mean when I say, “Apple should buy up all of its shares.”

    They have to give those shares to people, which would in turn make them very wealthy. If they buy back 50% of their shares and say give it out to staff, they'd be distributing over $200 billion between about 50,000 people ($4m each). A lot of them would just retire. They could have conditions on them such as having to work for at least 10-20 years before cashing in though.

    If they just take them off the table, it increases the value of the shares of the people who still have them. In other words, making the likes of Icahn much more wealthy with more say in how the company is run.
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  • Reply 124 of 131
    Originally Posted by Marvin View Post

    If they just take them off the table, it increases the value of the shares of the people who still have them. In other words, making the likes of Icahn much more wealthy with more say in how the company is run.

     

    But doesn’t he want them to take his shares? I can’t imagine he demands a buyback for charity’s sake. <img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" /> 

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  • Reply 125 of 131
    Marvinmarvin Posts: 15,585moderator
    But doesn’t he want them to take his shares? I can’t imagine he demands a buyback for charity’s sake. :lol:

    The buyback increases the value of his shares so he profits by selling them to someone else. He doesn't want Apple to buy back his shares at $525 because that would only make him a small return. He wants Apple to buy other shares at $525 so that it raises the value of his shares above $600-700 and he'd make about $1b profit in under 3 years. He's lying to other shareholders to get them on board with the plan - that plan being pump and dump. When the biggest shareholders hit the predetermined highs, they'll start selling fast and it'll drop. Then they'll buy cheap again, maybe even suggest more buybacks until they can keep draining the massive profits year after year. The more the biggest players make, the more shares they'll buy cheap and the more control they'll have over the company.
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  • Reply 126 of 131
    Originally Posted by Marvin View Post

    The buyback increases the value of his shares so he profits by selling them to someone else. He doesn't want Apple to buy back his shares at $525 because that would only make him a small return. He wants Apple to buy other shares at $525 so that it raises the value of his shares above $600-700 and he'd make about $1b profit in under 3 years.

     

    Well, whatever Apple does with its shares, I hope they buy back his first. :grumble: “Hey, you wanted a buyback…”

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  • Reply 127 of 131
    crowleycrowley Posts: 10,453member
    Another legal impossibility. Apple can't forcibly buy back any individual's shares.


    Also, I have no idea what you mean when you say "Apple should buy up all of its shares." Given that the conversation is about Apple buying back shares, I assumed you meant that Apple should buy back all the shares, please enlighten me as to my mistake.
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  • Reply 128 of 131
    crowleycrowley Posts: 10,453member
    Quote:

    Originally Posted by Marvin View Post



    The buyback increases the value of his shares 

     

    Nitpicking here, but it increases the proportion of ownership, not necessarily the value, since Apple will just be replacing outstanding share commitment with outstanding debt (or a drop in cash reserves).  All these things are (theoretically at least) taken into account in the share price, so an individual shareholder shouldn't get see a rise in their stock solely because the company retires some shares.  It only works to boost value if the shares are undervalued with regard to assets and/or future earnings, which will cause a greater rise in share price and/or dividends amongst a smaller share pool when the market finally catches on.

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  • Reply 129 of 131
    Does apple's money have to come back to america to buy the shares if it was to happen, or can apple buy the shares in other currencies without paying import tax?
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  • Reply 130 of 131
    jungmarkjungmark Posts: 6,928member
    Does apple's money have to come back to america to buy the shares if it was to happen, or can apple buy the shares in other currencies without paying import tax?

    They'll need to get another low interest loan to buy back stock.
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