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Icahn acquires stake in Apple, pushes for share buyback
2013-08-14 09:03:00| Telecompaper Headlines
(Telecompaper) Investor Carl Icahn has acquired a stake worth over USD 1.5 billion in Apple and is pushing the company to buy back its own shares. While Apple earlier this year announced a large buyback, Icahn said in an interview with the Wall Street Journal that he wants to see it happen right away, near the current share price, which he considers cheap. "This is a no-brainer to go buy stock in a company that can go borrow" at a low rate, Icahn said in an interview. "Buy the company here and even without earnings growth, we think it ought to be worth USD 625," he said, referring to the stock price, which closed the day of the interview at USD 489.57, having risen 5 percent on the news of Icahn's investment. Icahn also used used Twitter to publicize his move, saying he had a "nice" conversation with Apple CEO Tim Cook and discussed his opinion that "a larger share buyback should be done now". He added that he plans to speak with Cook again "shortly". Steve Dowling, an Apple spokesman, said the company appreciates the interest and investment of all its shareholders. "Tim had a very positive conversation with Mr. Icahn today," he said, without elaborating.
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Category:Telecommunications