Industryweek 5848 Carlicahn

Investor Icahn Increases Pressure on Apple to Boost Share Repurchase

Dec. 4, 2013
Icahn has said he is bullish on Apple and sees the iPhone and iPad maker as undervalued.

NEW YORK - Activist investor Carl Icahn on Wednesday stepped up pressure on Apple to boost its share repurchase plan with a formal proposal to the tech giant's board of directors.

Icahn said he was making the proposal while scaling back his more ambitious share repurchase suggestion made earlier this year to Apple (IW 500/4) CEO Tim Cook.

"Gave $AAPL notice we'll be making a precatory proposal to call for vote to increase buyback program, although not at $150 billion level," Icahn said in a tweet.

A precatory request is one that would not be binding but would merely request that the company's board consider the action.

CNBC said Icahn was asking for $50 billion in additional share buybacks, which would boost Apple's program to some $110 billion.

A huge repurchase of shares could increase the value for shareholders by reducing the number of shares outstanding. Apple has already agreed to a plan to return some $100 billion to shareholders, including $60 billion in buybacks.

Icahn has said he is bullish on Apple and sees the iPhone and iPad maker as undervalued.

The billionaire investor has a long history of taking positions in companies that give him the leverage to force changes in management or provide dividends to shareholders.

In documents filed with the Securities and Exchange Commission on Wednesday, Icahn said he and his affiliates owned some 4.7 million Apple shares or 0.53% of the outstanding shares.

Copyright Agence France-Presse, 2013

Popular Sponsored Recommendations

Global Supply Chain Readiness Report: The Pandemic and Beyond

Sept. 23, 2022
Jabil and IndustryWeek look into how manufacturers are responding to supply chain woes.

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!