Icahn reveals discussion with Apple CEO Tim Cook got 'a little testy'

Posted:
in AAPL Investors edited January 2014
While he initially described dinner with Tim Cook as "cordial," Icahn later revealed in an interview that his talks with Apple's CEO about the use of the company's cash reserves were "a little testy" at times.

Icahn


Icahn also revealed in an interview on CNBC that Cook was joined by Apple Chief Financial Officer Peter Oppenheimer for their discussions in New York City on Monday. It was there that the three apparently disputed whether shareholders should have a say in how Apple executives opt to spend the company's cash.

"The board is not God," Icahn said. "And the board, in this kind of a case, should be listening to what the shareholders want."



The billionaire investor believes Apple should increase its share buyback program and spend $150 billion on its own shares. Apple's current plan calls for it to spend a total of $100 billion through 2015 on share buybacks as well as dividend payouts.

Earlier Tuesday, Icahn took to Twitter to say that he had a "cordial dinner" with Cook. The two parties will meet to continue their "dialogue" in about three weeks, which is about the same time that Apple is expected to report its fourth-quarter earnings for fiscal 2013.

Though he has publicly said he believes shares of AAPL are "extremely undervalued," Icahn has a reputation for causing trouble with tech companies. He famously opposed Michael Dell's efforts to take PC maker Dell private, won three seats on Yahoo's Board of Directors, and is also credited with helping to force out the CEO of Motorola before the handset maker was bought by Google.

Icahn is said to have about a $1.5 billion stake in Apple. While that's a considerable sum, it would not put him among the company's largest shareholders, particularly institutional investors with significant stakes.
«134

Comments

  • Reply 1 of 63

    If it got testy from Apple's side (which is what it sounds like), more props to Tim.

     

    OTOH, if it was from Icahn's side, what else is new -- he seems to thrive on getting into fights. Here's an example: http://on.wsj.com/19fodJq (or if you want to watch the whole thing http://video.cnbc.com/gallery/?video=3000143591; be warned that, while it's entertaining, it's 27 minutes of your life you wan't get back!).

  • Reply 2 of 63
    dugbugdugbug Posts: 283member

    Yeah go Tim.  Carl probably thought this would be an easy pitch.  My belief is Apple would turn into another HP or DELL in a heartbeat if it changed how it works.  It would start to turn down design team choices that had higher manufacturing expenses for example.

  • Reply 3 of 63

    We all know, Carl, that you have Apple's best interest at heart and that this has nothing to do with your own self interest. I mean, really , if anyone really thinks about this, what have you got to gain from pushing Tim Cook around.

     

     

     

    /s (as if that really had to be stated)

  • Reply 4 of 63
    Icahn has always enjoyed throwing his financial weight around. Perhaps he has a fantasy where he takes over Apple and changes his name to iCahn. I don't see him changing his name until after he is in control of Apple and, since that's not going to happen, we can be carelessly amused.
  • Reply 5 of 63
    Icahn has always enjoyed throwing his financial weight around. Perhaps he has a fantasy where he takes over Apple and changes his name to iCahn. I don't see him changing his name until after he is in control of Apple and, since that's not going to happen, we can be carelessly amused.
  • Reply 6 of 63
    gatorguygatorguy Posts: 20,298member
    Icahn's a pretty chatty little guy isn't he?
  • Reply 7 of 63
    lkrupplkrupp Posts: 6,819member
    The minute Icahn sticks his nose into a company's business things go haywire. I live near St. Louis, MO. Icahn got his hooks into St. Louis based TWA airlines and within a few years they were gone, sold to American Airlines, and St. Louis lost its international flight status. Just go to Wikipedia and read the gory details of Icahn's stewardship.

    http://en.wikipedia.org/wiki/Trans_World_Airlines
  • Reply 8 of 63
    jd_in_sbjd_in_sb Posts: 1,483member
    Icahn just wants to make a quick profit. He does not care what actually happens over the long term to the companies he is investing in.
  • Reply 9 of 63
    irelandireland Posts: 17,549member
    This fool certainly likes the attention.
  • Reply 9 of 63
    cpsrocpsro Posts: 2,449member

    Icahn is like a shark reacting to a waft of blood. No doubt to him, Apple looks beleaguered and its management weak. Good for Cook standing up to him! You don't want Icahn hanging around. He carries an air and reputation of mismanagement and destruction all about him, like the dust cloud around Pig-Pen.

  • Reply 11 of 63

    You're always better off doing the opposite of what Icahn wants you to do.

  • Reply 12 of 63
    Quote:

    Originally Posted by Cpsro View Post

     

    Icahn is like a shark reacting to a waft of blood. No doubt to him, Apple looks beleaguered and its management weak. Good for Cook standing up to him! You don't want Icahn hanging around. He carries an air and reputation of mismanagement and destruction all about him, like the dust cloud around Pig-Pen.


     

    Apple looks beleaguered?

     

    I know what you are saying... but, you know...

  • Reply 13 of 63
    robmrobm Posts: 1,068member
    Ye olde "listen to the shareholder. I'm a big shareholder so you gotta listen to me !" pitch again.
    Another asset stripper dressed up in an expensive suit.

    He'll short Apple the moment he realises he can't get his own way.
  • Reply 14 of 63
    gtrgtr Posts: 3,231member
    This version of dinner with Steve Jobs instead of Tim Cook:

    Icahn: I believe that the Apple board should listen more to what the shareholders want.
    Steve Jobs: F*ck off.
    Icahn: Okay, what should we have for dessert?
  • Reply 15 of 63
    charlitunacharlituna Posts: 7,205member
    Guy with no knowledge of the company is trying to tell them how to do things. Yeah they are likely to get a bit testy

    The board isn't God and neither are the shareholders no matter how many they have. Get over it.
  • Reply 16 of 63
    Someone please explain to me why Cook would even give this guy the time or day (or night as the case may be)? He has a mediocre stake that can't control jack. I'm not sure how corporate law works in America but don't investors get a say when it comes to electing the board or directors? I'm not saying that's perfect but that's how I understand it to work.

    Or was it that he was the one that won the coffee with Cook auction and it turned into dinner with Tim? It's the only plausible explanation I can think of!
  • Reply 17 of 63
    charlitunacharlituna Posts: 7,205member
    gtr wrote: »
    This version of dinner with Steve Jobs instead of Tim Cook:

    Icahn: I believe that the Apple board should listen more to what the shareholders want.
    Steve Jobs: F*ck off.
    Icahn: Okay, what should we have for dessert?

    Who says that isn't what Tim said also. Maybe not those words but that message
  • Reply 18 of 63
    People like him produces no actual value in the world. As soon as a disruption occur in finance - like iPhone was to smartphones - the healthier the economy would be.
  • Reply 19 of 63
    dasanman69dasanman69 Posts: 12,976member
    Tim: "did you help make any of the money?"

    Carl: "No"

    Tim: "Then STFU about it"
  • Reply 20 of 63
    tinktink Posts: 395member
    F$$$ Icahn - He comes across as an ambulance chaser. I doubt he has the companies best interest in mind, just his empire. I'd side with Tim Cook and Peter Oppenheimer any day of the week.
    I trust Cooks and Oppenheimer with steering ship and finances!
Sign In or Register to comment.