Photo: Huffington Post

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

  1. rettun1 says:

    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.

    • 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.