360° Coverage : Carl Icahn snaps up another $500M of Apple stock

2 Updates

Carl Icahn snaps up another $500M of Apple stock

Jan 23 2014, 11:07pm CST | by

Billionaire Icahn invests another $500 million in Apple, arguing the stock remains a bargain SAN FRANCISCO (AP) — Outspoken billionaire Carl Icahn has tossed another bushel of Apple...

Filed under: news

 
 
 

39 weeks ago

Carl Icahn snaps up another $500M of Apple stock

Jan 23 2014, 11:07pm CST | by

Billionaire Icahn invests another $500 million in Apple, arguing the stock remains a bargain

SAN FRANCISCO (AP) — Outspoken billionaire Carl Icahn has tossed another bushel of Apple stock into his investment portfolio and suggested some new products as he tries to persuade the iPhone maker to do more to lift its market value.

In an attempt to give his arguments more credence, Icahn disclosed that he invested another $500 million in Apple Inc. in a series of purchases made Thursday.

With the latest shopping spree, Icahn has spent $1 billion on Apple stock during the past weeks to raise his total holdings in the Cupertino, Calif., company to $3.6 billion since he began buying the shares five months ago when they were still trading below $450.

Apple's stock rose $4.67 to close at $556.18 on Thursday. Despite the recent gains, the shares remain about 20 percent below their peak reached 16 months ago.

Icahn, a longtime activist investor, has been lobbying Apple's board to boost the stock by funneling more of the company's $147 billion in cash toward share repurchases. Meeting Icahn's demands would require Apple to spend more on its stock than it planned, something the board so far has been unwilling to do.

The impasse has set the stage for a Feb. 28 showdown at Apple's annual meeting, where shareholders will vote on a non-binding proposal recommending that the board follow Icahn's advice. Apple is urging its shareholders to vote against the proposal, saying it is already reviewing ways to return more cash to shareholders.

Icahn tried to sway Apple shareholders to his side Thursday with the release of an open letter that represented his most detailed explanation so far about why he believes the company is worth substantially more than its current market value of about $500 billion.

Besides elaborating on the reasons why he believes it's a "no-brainer" for Apple to buy more of its own stock, Icahn took the unusual step of pointing out new markets where he believes the company could easily make even more money than it already does with its line of iPhones, iPads, iPods and Mac computers.

Icahn made it clear he wants to see an Apple television set, a device that has been a subject of company speculation for the past three years. Steve Jobs, Apple's late CEO and co-founder, suggested Apple was working on a TV set in interviews with his biographer before he died in October 2011.

In the letter, Icahn suggested that Apple should make a $1,600 television set with an "ultra" high-definition screen designed to show so-called "4K' programming that will be coming from Internet video service Netflix Inc. and other sources later this year. Icahn thinks Apple could sell at least 25 million of the ultra-HD sets backed by its brand and software, generating about $40 billion in revenue.

Icahn also touted the possibility of Apple making a smartwatch, an idea that company CEO Tim Cook has hinted at in public appearances. Icahn also thinks the company is ideally positioned to roll out a system for handling digital payments.

The letter also jabbed at a sore point at Apple by referring to the perceived lack of innovation at the company since Jobs died. Icahn described recent upgrades to the iPhone and iPad as "evolutionary (not revolutionary)."

Apple didn't immediately respond to requests for comment.

As has been the case through most of his public campaign, Icahn praised Cook in his letter for doing an "excellent job."

Icahn's main beef has been with Apple's board, which consists of Cook and seven other members. In an interview with the Fox Business network, Icahn said it's "almost criminal" for the board to resist increasing the company's stock buyback program and questioned the directors' intelligence about financial matters.

Icahn wants Apple to spend $50 billion buying back its stock by the end of its fiscal year ending in September. The company began the year with $37 billion left to invest in a $60 billion buyback program that doesn't expire until September 2015.

Source: AP Business

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of 20,000 by 3 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

8 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/31" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

blog comments powered by Disqus

Latest stories

IS abducts Iraqi journalists as its positions get bombed (Roundup)
Baghdad/Paris, Oct 24 (IANS) The Islamic State (IS) terrorist group Friday kidnapped three Iraqi reporters in the northern Iraqi city of Mosul even as French fighter jets and Iraqi military helicopters bombed its positions in northern Iraq.
 
 
Ethiopia to deploy 210 health workers in Ebola-hit West Africa
Addis Ababa, Oct 24 (IANS) Ethiopia said Friday it will deploy about 210 health professionals to Ebola-affected countries to support the response against the epidemic in West Africa.
 
 
China offers new anti-Ebola aid to West Africa
Beijing, Oct 24 (IANS) China will provide 500 million yuan (about $82 million) in aid to Liberia, Sierra Leone, Guinea and international organisations to fight the Ebola virus disease, Chinese President Xi Jinping said Friday.
 
 
India, China form Asian Infra Investment Bank
Beijing, Oct 24 (IANS) India Friday signed on to a China-led initiative to create an international bank to fund development of infrastructure essential for Asia's economic growth and reduce the dependence on Western-dominated World Bank and International Monetary Fund.
 
 
 

Latest from the Network

Second MERS case reported in Qatar
Doha, Oct 23 (IANS) A 43-year-old man in Qatar has tested positive for Middle East Respiratory Syndrome (MERS) in the second confirmed case of the deadly virus in 10 days, media reported Thursday. The patient had...
Read more on Business Balla
 
Two people die in Pakistan bomb blast
Islamabad, Oct 23 (IANS) At least two people were killed and 12 others injured in an explosion that took place in Pakistan's Balochistan province Thursday, media reported. The bomb was planted on a motorcycle, Dawn...
Read more on Politics Balla
 
Trott extends contract with Warwickshire till 2017
London, Oct 23 (IANS) England batsman Jonathan Trott, whose mental issues led to his abrupt departure from last winter's Ashes tour, has confirmed his successful comeback to competitive cricket by signing a new three-...
Read more on Sport Balla
 
Srikanth, Kashyap big movers in BWF rankings
Kuala Lumpur, Oct 23 (IANS) Indian men shuttlers Kidambi Srikanth and Parupalli Kashyap jumped seven places each in the latest Badminton World Federation (BWF) rankings released Thursday while Olympic bronze medallist...
Read more on Sport Balla
 
Alvin Stardust dead
London, Oct 23 (IANS) English singer Alvin Stardust died after a short illness. He was 72. Stardust's manager confirmed the news about his demise Thursday, reports mirror.co.uk. He was recently diagnosed with...
Read more on Celebrity Balla
 
Indian man reunited with family after 40 years
Dubai, Oct 23 (IANS) An Indian man, who had disappeared from his hometown in Kerala nearly 40 years ago, has been found by his family at a hospital in Dubai in the UAE, a newspaper report said. Now in his 60s, Abdulla...
Read more on Politics Balla
 
Srikanth, Kashyap, Saina rise in world rankings
Kala Lumpur, Oct 23 (IANS) Indian men shuttlers Kidambi Srikanth and Parupalli Kashyap jumped seven places each in the latest released Badminton World Federation (BWF) rankings Thursday while Olympic bronze medallist...
Read more on Sport Balla
 
Flintoff signs for Big Bash side Brisbane Heat
Brisbane, Oct 23 (IANS) Former England captain and all-rounder Andrew Flintoff, who retired from international cricket in 2009, Wednesday confirmed that he will play for Brisbane Heat in the Big Bash League (BBL) this...
Read more on Sport Balla
 
OPEC daily basket price falls again
Vienna, Oct 23 (IANS/WAM) The basket of 12 crude oils of the Organization of Petroleum Exporting Countries (OPEC) closed at $81.94 a barrel Wednesday compared to $82.09 Tuesday, the OPEC Secretariat said. The new OPEC...
Read more on Business Balla
 
Lopez to sign multi-million dollar deal?
Los Angeles, Oct 23 (IANS) Singer-actress Jennifer Lopez is reportedly in the final stages of securing a multi-million dollar deal to perform in Las Vegas. The 45-year-old is being offered $350,000 per show at The...
Read more on Celebrity Balla