August 14, 2013

Icahn buys a chunk of Apple, urges buying back more stock

The Associated Press

SAN FRANCISCO — Activist investor Carl Icahn says Apple should be doing more to revive its stock price, and wants to help CEO Tim Cook with the resuscitation.

Icahn, an outspoken billionaire renowned for pouncing on out-of-favor stocks, signaled he has Apple Inc. in his sights in two messages posted Tuesday on his Twitter account. Until now, he had been deploying Twitter as a weapon in his attack on Dell Inc.'s proposed sale to a group led by its CEO, Michael Dell.

The Twitter posts announced that Icahn had acquired a large but unspecified stake in Apple and that he had just had a "nice conversation" with Cook about his belief that the maker of the iPhone and iPad should be using even more of its $147 billion in cash to buy back its own stock.

Icahn, 77, probably has won some fans among Apple shareholders. After he tweeted, Apple's market value rose by about $13 billion.

In April, Apple pledged to spend $60 billion buying back its stock through the end of 2015.

Apple also plans to dole out more than $10 billion in shareholder dividends each year.

Despite a recent upturn that has re-established Apple as the world's most valuable company, its stock remains 30 percent below its peak of $705.07.

 

Were you interviewed for this story? If so, please fill out our accuracy form

Send question/comment to the editors




Further Discussion

Here at PressHerald.com we value our readers and are committed to growing our community by encouraging you to add to the discussion. To ensure conscientious dialogue we have implemented a strict no-bullying policy. To participate, you must follow our Terms of Use.

Questions about the article? Add them below and we’ll try to answer them or do a follow-up post as soon as we can. Technical problems? Email them to us with an exact description of the problem. Make sure to include:
  • Type of computer or mobile device your are using
  • Exact operating system and browser you are viewing the site on (TIP: You can easily determine your operating system here.)