More modern look coming this fall.
Carl Icahn Abandons Push for Apple to Boost Stock Buyback
Billionaire Carl Icahn has abandoned his effort to encourage Apple to increase its stock repurchasing program, according to a new letter addressed to Apple shareholders. Icahn had aggressively pushed for an increased stock buyback of up to $150 billion, going so far as to recommend a proxy vote for shareholders to support his agenda.
In explaining his reversal, Icahn points to a recent decision by Apple to repurchase $14 billion on a dip in the company's stock price following its most recent earnings announcement. Well-known proxy advisory firm Institutional Shareholder Services (ISS) this week also sided with Apple and recommended against Icahn's scaled-back $50 billion stock buyback plan presented to shareholders.
Apple's 2014 annual meeting of shareholders is scheduled for February 28, 2014.
In explaining his reversal, Icahn points to a recent decision by Apple to repurchase $14 billion on a dip in the company's stock price following its most recent earnings announcement. Well-known proxy advisory firm Institutional Shareholder Services (ISS) this week also sided with Apple and recommended against Icahn's scaled-back $50 billion stock buyback plan presented to shareholders.
That being said, we also agree with ISS's observation, taking into account that the company recently repurchased in "two weeks alone" $14 billion worth in shares, that "for fiscal 2014, it appears on track to repurchase at least $32 billion in shares." Our proposal, as ISS points out, "thus effectively only asks the board to spend another $18 billion on repurchases in the current year."Icahn went on to say that he is excited about Apple's future, which will see the company introduce products in new categories this year. Rumors strongly suggest Apple is working on a watch/fitness band with sensors to potentially measure steps, calories, heart rate, glucose levels and more. Apple has assembled a "dream team" to work on this iWatch product, hiring a number of the best and brightest scientists from the medical device and health sensor field.
As Tim Cook describes them, these recent actions taken by the company to repurchase shares have been both "opportunistic" and "aggressive" and we are supportive. In light of these actions, and ISS's recommendation, we see no reason to persist with our non-binding proposal, especially when the company is already so close to fulfilling our requested repurchase target.
Apple's 2014 annual meeting of shareholders is scheduled for February 28, 2014.
[ 103 comments ]
Top Rated Comments
(View all)
24 weeks ago
He gave up? He doesn't strike me the guy to give up easily. Something went down.
24 weeks ago
No one wants or needs a goofy watch
try dictating a text to your girlfriend, while you're at dinner with your wife
:D
try dictating a text to your girlfriend, while you're at dinner with your wife
:D
24 weeks ago
That's a sudden change in direction for him.
I don't see it as a change at all. I see it as he is basically getting what he wanted all along. If Apple does buyback $32B in 2014 why would he need to keep pushing for a continued buyback?
Ask for 50, settle for 32. Call it a win. This is not to say Apple's buyback has anything to do with Icahn. It could have simply been their plan all along. Nevertheless, he still gets what he wanted.
24 weeks ago
I mean he makes some grand statement, invests millions into Apple, and then a few weeks later changes his stance...this seems like an obvious scheme to me.
Can you give us some specifics about what this obvious scheme might be? And please, leave out the dubious Hollywood script.
(BTW, he invested BILLIONS, not just millions.)
[ Read All Comments ]
Hello Inc's new Kickstarter project Sense is an iOS-compatible sleep tracking system that allows users to monitor their sleep patterns and bedroom environments without the need for intrusive...
Google today updated its Gmail for iOS app to version 3.14159, adding improved integration with its Google Drive storage solution.
It's now possible to save email attachments directly to...
Late night talk show host Jimmy Kimmel covered Apple's upcoming smart watch on last night's show, airing a humorous segment that featured the team showing pedestrians on Hollywood Boulevard a...
While several high-profile smart deadbolt systems such as Lockitron and August have experienced significant delays, Kwikset has been shipping its Kevo Bluetooth deadbolt for some time now, and today...
Apple has seeded developers with new versions of Safari 7.1 for OS X Mavericks and Safari 6.2 for OS X Mountain Lion as works continues on OS X Yosemite. In its release notes for both betas, Apple is...
Apple has announced on its official Chinese website that it will open its new retail store in Wuxi, China at Wuxi Hang Lung Plaza, which is about an hour's train ride from Shanghai, on Saturday,...
Our forum members are building a comprehensive list of all the apps that function in iOS 8 beta 4, which may be helpful for users who have installed the beta or who plan to install it. The list also...
Fantastical 2 for the iPhone and the iPad were today updated to version 2.1, adding several new features to both mobile apps including a new Snooze feature, event invitation notifications, birthday...
