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

Posted:
in AAPL Investors edited January 2014
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.
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Comments

  • Reply 1 of 65
    irelandireland Posts: 17,800member
    Don't trust this man. He even looks shady.
  • Reply 2 of 65
    Carl can go off himself. Apple would be a fool to let this go Icahn's way.
  • Reply 3 of 65
    "Apple is not a bank, so please give the money to me," said Ichan.
  • Reply 4 of 65
    jkichlinejkichline Posts: 1,369member
    He's like a cockroach... you just can't get rid of him. Ugh.
  • Reply 5 of 65
    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
  • Reply 6 of 65
    leonardleonard Posts: 528member
    Carl "take the money and run" Icahn.
  • Reply 7 of 65
    Why won't this asshole JUST DIE?
  • Reply 8 of 65
    Ichan clearly does not have Apple's best interests in mind. He can go FOAD.
  • Reply 9 of 65
    MacProMacPro Posts: 19,851member
    sog35 wrote: »
    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. :)
  • Reply 10 of 65

    Icahn’t believe he won’t shut up.

  • Reply 11 of 65
    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.
  • Reply 12 of 65
    Why would apple do something that sets Icahn up to sell all his stocks?..
  • Reply 13 of 65
    Quote:

    Originally Posted by Ireland View Post



    He even looks shady.

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

  • Reply 14 of 65
    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.
  • Reply 15 of 65
    snovasnova Posts: 1,281member
    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.

  • Reply 16 of 65
    MacProMacPro Posts: 19,851member
    What does that mean? What does "shady" look like?

    Isn't that an idiom in the USA? Means looks dodgy .... :D
  • Reply 17 of 65
    MacProMacPro Posts: 19,851member
    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!
  • Reply 18 of 65
    magman1979magman1979 Posts: 1,301member
    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!

  • Reply 19 of 65
    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.
  • Reply 20 of 65
    Tech laggard for rest of 2013 -- how about for as long as they continue issuing that dividend. Ba ha ha!
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