Thursday, October 9, 2014

Billioniare Investor To Apple: Give Us More Money

Carl Icahn is back demanding Apple send more cash to its shareholders.



Stephen Lam / Reuters



Brendan Mcdermid / Reuters


After a several months of near-silence on Apple, the billionaire investor Carl Icahn is back, once again releasing an open letter where he said the company's shares were undervalued and demanding that Apple buy more of its own stock.


Icahn said Apple stock, which was trading at $100.80 at the close of trading Wednesday, was worth twice as much. Ichan owns about 53 million shares, worth about $5.3 billion. Apple shares rose .89%, or $.90, to $101.70 in early trading Thursday.


While he's only the 12th largest shareholder, the other 11 are big asset managers and banks holding shares on behalf of clients who tend not to weigh in on the corporate strategy of the companies whose share they own. The 78 years old Icahn, who owns .88% of Apple's shares, has disproportionate influence thanks to his long investing track record and extreme outspokeness.


As is usual in the more of a year of public letter writing and TV appearances to discuss Apple, Icahn declined to criticize — and even praised — the company's actual performance, calling the release of the iPhone 6 and 6 Plus "truly a watershed moment" and that Apple chief executive officer Tim Cook was "the ideal CEO for Apple."




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