Michal Marek In March 2012, Apple decided to use some of its massive cash pile and start over buy back your shares. The original plan was to return $10 billion worth of securities to Cupertino. However, in April this year, Apple reconsidered its plan, took advantage of the relatively low price of its shares and increased the volume of share buybacks to $60 billion. However, influential investor Carl Icahn would like Apple to go much further.
Icahn released information on his Twitter that he met with Apple CEO Tim Cook and had a friendly dinner with him. On this occasion, he told him that it would be good for Apple if he bought back the shares straight away for 150 billion dollars. Cook did not give him a clear answer, and negotiations on the whole matter will continue in three weeks.
Carl Icahn is an important investor for Apple. He owns $2 billion worth of shares in the Californian company and is certainly in a position to advise and suggest something to Tim Cook. Icahn's motives are fairly clear. He thinks Apple's current stock price is undervalued, and given how much stock he owns, he has a strong interest in seeing it rise.
As a general rule, the following applies. A joint-stock company that decides how to invest its profit can choose a stock buyback option. The company takes such a step when it considers its shares to be undervalued. By buying back part of their shares, they reduce their availability on the market and thus create conditions for the growth of their value and, consequently, for the increase of the value of the entire company.
Investor Icahn believes in Apple and thinks that such a solution would be correct and would pay off for the people of Cupertino. In an interview with CNBC, he even said that Tim Cook is doing a hell of a job.
I have no idea what I'd talk about over dinner with Apple's CEO. I'd rather be sitting in the corner of the room during Ivo and Federighi's meeting.. Come to think of it, I'm not sure I'd keep the secrets. I hope so, but it would definitely hurt :-)
If you didn't hold them, it would hurt like hell... and then not at all :-D
Icahn already announced this in mid-August. Evidently he is still pressing Cook…. http://e-svet.e15.cz/it-byznys/miliardar-icahn-vstoupil-do-applu-akcie-chce-vyhnat-na-700-dolaru-1013636