By Dow Jones Business News, October 24, 2013, 10:25:00 AM EDT
Icahn Boosts Apple Stake, Pushes for Buyback
Carl Icahn has boosted his investment in Apple Inc. ( AAPL ) by about 22% to 4.73 million shares and continues to push
for a massive $150 billion buyback at the company, according to a letter he sent to Apple Chief Executive Tim Cook.
The billionaire investor suggests the company use a self-tender offer to buy back the stock, and pledges that he
himself wouldn't sell the stock and take profits.
"There is nothing short-term about my intentions here," he said.
As part of his thesis, Mr. Icahn suggests that three years after the buyback, with the benefit of earnings growth,
Apple's shares could hit $1,250.
The stock Thursday slipped 0.3% to $523.31.
A person close to Apple said there was no obvious reason any shareholder would tender into a buyback at $525 because
of where shares are trading at this point.
The company has already launched a plan to return $100 billion to shareholders, including a $60 billion buyback, over
the next three years, a plan it says is the largest ever.
Mr. Icahn first said he was a holder in Apple in August and then had dinner with Mr. Cook earlier this month at Mr.
Icahn's apartment in New York, Mr. Icahn has said on Twitter.
He has said previously he thought Apple's cash position was too large and that it should use a debt raise to fund the
massive buyback, essentially equal to its cash position.
When he first began discussing the buyback, shares of Apple were below $500 a share.
Mr. Icahn revealed the letter Thursday as he launched a website for corporate governance arguments, though the site
was hit with a technical glitch that made accessing the letter difficult. The glitch was fixed within the first hour.
His website includes a drawing comparing corporate America to the feudal system, a complaint Mr. Icahn often voices.
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