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Carl Icahn “pushed hard” for $150 billion buyback at Cook meeting, talks to continue in 3 weeks [Update: Video]

Photo: Huffington Post

After taking an undisclosed “large position” in Apple last month, rumored to be in excess of $1B, prominent investor Carl Icahn said he thinks Apple and CEO Tim Cook should do a larger buyback. Now, following a scheduled meeting with Tim Cook in New York yesterday, Icahn says he “pushed hard for a 150 billion buyback” during a “cordial dinner”:

While Apple announced earlier this year that it would return around $100 billion to shareholders by the end of 2015 as part of its $60 billion buyback program and increased dividend, Icahn previously told Reuters he thinks Apple is capable of doing a $150 billion buyback by borrowing the money at 3 percent:

“If Apple does this now and earnings increase at only 10 percent, the stock – even keeping the same multiple currently – should trade at $700 a share,” Icahn said in a phone interview. Apple has “huge borrowing power, little relative debt and trades at a low multiple.”

As noted in his tweet above, Icahn says he will resume talks with Cook regarding the buyback in three weeks.

Update: we’ve embedded the CEO’s conversations on video to CNBC below:

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Comments

  1. rettun1 - 10 years ago

    I have limited understanding of the stock market, but my gut feeling is that a large but back would benefit Apple (and surely Icahn). More responsibility to shareholders hinders the creative process, in my eyes. If they were made private, I think Apple would have full control of the reigns.

    • Björn Månsson - 10 years ago

      Apple buying back stock does not make it go private. A company goes private when a person/group of people buys all shares and de-lists it from the stock market.

      Also, going private does not mean that a company (if we by company mean the CEO or board) get’s more freedom, it all depends on the owners. It could be quite the opposite.

Author

Avatar for Jordan Kahn Jordan Kahn

Jordan writes about all things Apple as Senior Editor of 9to5Mac, & contributes to 9to5Google, 9to5Toys, & Electrek.co. He also co-authors 9to5Mac’s Logic Pros series.