carl icahn
Latest
HP rejects Xerox buyout offer, at least for now
HP has been receiving buyout offers as of late, but it's not ready to lose its independence -- at least, not yet. The tech pioneer has rejected a Xerox proposal to buy the company for $22 per share, arguing that the current offer "undervalues" HP and isn't in shareholders' "best interests." It also cast doubt on Xerox's ability to pull off the deal in the first place, noting Xerox's declining revenue and the prospect of massive debt for the combined company.
Apple bought back $56 billion of its own stock in 2014
Apple is no stranger to stock buybacks so its no surprise that the trend continued in the 2014 fiscal year. And how much stock did Apple buy back this year? According to a new report for FactSet, Apple spent over $56 billion buying back stock this year. That's $36.8 billon more than IBM who took the second for most spent on buybacks with $19.2 billion. Stock buybacks have been good for Apple. So good that this year Apple also earned itself first and second place for the top two buybacks quarters since FaceSet started tracking the S&P 500 in 2005. First place goes for the $18.6 billion bought back in the first quarter, almost as much as IBM bought all year, while second place comes from the fourth quarter's $17 billion buyback. In March of this year the company spent more money buying back stock than Google generated in revenue. Apple's buyback program started in 2012, and has grown every year since. This past April CEO Tim Cook had dinner with activist investor Carl Icahn to discuss the "magnitude" of the company's buyback plans. If this year's numbers are any indication Icahn made a convincing case.
Carl Icahn's open letter to Tim Cook
Activist shareholder and invstor Carl Icahn is back at work poking at Apple, this time in a letter to Tim Cook published on the Shareholders' Square Table website. The short version? "Dear Tim, Remember all of those shares of Apple stock I bought? Speed up your stock repurchase plan by buying them back from me." Of course, there's much more than that to the letter from Icahn, his son Brett Icahn, and David Schechter. For example, a breakdown of how each Apple product line is performing both now and how Icahn expects the products to do in the future, as well as forecasting that Apple will get into UltraHD Television in FY 2016. Icahn goes so far as to forecast that Apple's going to sell "12 million 55" and 65" TV sets in FY 2016 and 25 million in FY2017". That should make Piper Jaffray's Gene Munster ecstatically happy. So why the interest in the company's future fortunes? Icahn makes his case that Apple stock is currently undervalued - the price of a share of Apple today was just over US$101, and Icahn thinks the company is actually worth about double that: $203 per share. And what he's doing is asking Apple to buy back his shares, of course at a premium over the current market price - that's what a tender offer is. Icahn, who owns 53 million shares of AAPL, would like for Cook to communicate "to the rest of the board our request for the company to make a tender offer, which would meaningfully accelerate and increase the magnitude of share repurchases." This, of course, will benefit Icahn hugely: "We feel compelled to do so because we forecast such impressive earnings growth over the next few years, and therefore we believe Apple is dramatically undervalued in today's market, and the more shares repurchased now, the more each remaining shareholder will benefit from that earnings growth." The letter is well thought out, peppered with statements from Wall Street analysts, and optimistic about Apple's fortunes for the future. But there's a bit of "we know better than you" snarkiness throughout, ending with "To be totally clear, this letter is in no way intended as a criticism of you as CEO, nor is it intended to be critical of anything you or your team are doing from an operational perspective at Apple. Quite to the contrary, we could not be more supportive of you and your team, and of the excellent work being done at Apple, a company that continues to change the world through technological innovation." So why tinker with a finely-oiled machine? Because Icahn can easily help his 53 million shares gain value just by publishing a "friendly letter" like this. It will be fascinating to see what response, if any, is forthcoming from Cupertino.
Apple.com, Mac App Store celebrates 30 years of the Mac, and more news for January 24
Today marks the 30th anniversary of the Mac and Apple is out in force promoting it. Tim Cook will be appearing on ABC's World News with Diane Sawyer later tonight for an exclusive interview and now the company has also revamped its homepage in celebration of the anniversary. However, more than just redoing its homepage for today, Apple has also created a special section on its website detailing the 30-year history of the Mac. Users can watch a video about the Mac's history, browse a year-by-year timeline of the major advances in the Mac and even take part in an interactive chart by telling Apple what your first Mac was, how you discovered it and what you used it for. In addition to the celebrations on Apple.com, Apple also has a special "Happy birthday, Mac" section set up on the Mac App Store spotlighting a special selection of apps and games that captures the spirit of what makes the Mac so extraordinary. In other news: Apple has silently discontinued the Keynote Remote app. New remote functionality was added to the latest version of Keynote for iOS yesterday, so Apple decided to pull the old dedicated app. This isn't a surprise as Keynote Remote had not been updated to reflect iOS 7's new design aesthetic. This week's free App of the Week is Disney's Where's My Mickey? The app is a physics-based puzzler with simulated weather mechanics done in a style of classic Disney animation from the 1920s. Samsung announced yesterday it missed earnings estimates by a large margin. The earnings miss is due in part to the popularity of the iPhone 5c and 5s and increasing competition from other Asian vendors that make low-end Android phones. Carl Icahn scooped up another US$500 million worth of Apple stock yesterday. He tweeted the news just days after he made the world aware he had purchased an additional half a billion dollars in Apple stock just a few weeks ago. He now owns $3.6 billion in AAPL shares and called AAPL's value a "no brainer."
Pixelmator gets 16-bit image support for Mac Pro, and more news for January 23
Mac image and graphics editor Pixelmator has just dropped a big update to its software that further sees the app move in the direction of becoming a legitimate replacement for Photoshop. Pixelmator 3.1 "Marble," released today, adds a host of new features, the biggest of which is 16-bits-per-channel color image support when running the software on the new Mac Pro. The software also takes advantage of the Mac Pro's dual GPUs, so everything you do on it in Pixelmator is faster and smoother. Here's a list of all the optimizations for the new Mac Pro: • Both GPUs are used simultaneously when applying effects: one for computing the effect and the other one for composition rendering. • 16-bit per channel color images are supported. • The image auto saving is computed in the background while image composition is being rendered. • Optimizations made for all 4-core, 6-core, 8-core, or 12-core Intel Xeon processors for better zoom out handling and faster bitmap layer duplications. • GCD Dispatch I/O technology and PCIe-based flash storage makes opening and exporting high resolution images faster. • Increased memory bandwidth is fully utilized for Pixelmator operations. Besides the new Mac Pro features, Pixelmator 3.1 adds the ability to order prints right through the app, offers a number of layer style improvements and brings a ton of other little improvements such as bringing back more than 10 effects to the app and more. Pixelmator 3.1 is a free download to existing owners of the app. Everyone else can buy it via the Mac App Store for US$29.99. In other news: Speaking of the Mac Pro, those hoping to get one will have to wait until March now, as Apple's latest desktop shipping estimate has slipped back from February. Apple has released Apple releases iTunes 11.1.4. The updated iTunes adds the ability for users to view their Wish List while browsing their iTunes library. It also includes improved Arabic and Hebrew support and stability and bug fixes. A research report from JDSU says owners of the iPhone 5s are using 20 percent more cellular data, on average, than their iPhone 5-owning counterparts. Finally, Carl Icahn has tweeted that he's unhappy with Apple again... but he's buying a boatload of more stock. Icahn tweeted, "We feel $APPL board is doing great disservice to shareholders by not having markedly increased its buyback. In-depth letter to follow soon," right after he tweeted, "Having purchased $500 million more $AAPL shares in the last two weeks, our investment has crossed the $3 billion mark yesterday."
Apple files Preliminary Proxy Statement with SEC, urges shareholders to oppose Carl Icahn's share buyback proposal
Apple on Friday posted its Preliminary Proxy Statement with the SEC. The statement provides notice that Apple's annual shareholders meeting is scheduled to take place in 2014 on Friday, February 28. The meeting will see shareholders consider five proposals, one of which is activist investor Carl Icahn's proposal that Apple increase its stock buyback program by a minimum of US$50 billion. Apple, though, is of the position that shareholders should vote against Ichan's proposal. Apple, in its proxy statement, makes a point of noting that, while it opposes this specific proposal, it remains intent on returning profits to shareholders and is open to shareholder input in this regard. But rather than jumping on board with Icahn's proposal, Apple writes that it prefers to take a more measured approach that sees cash returned to shareholders "on an efficient and sustained basis." That said, Apple notes that it will continue to evaluate the state of its capital return program and will adjust it as need be in order to maximize the long-term interests of its shareholders. Apple further adds that because it operates in an extremely competitive and fast-moving industry, it's imperative that it maintains enough cash on hand to be able to take advantage of opportunities as they arise. The proxy statement reads in part: With breakthrough products and services such as the Mac, iPod, iPhone, iPad and App Store, the Company has created huge market opportunities, and the Board and management team believe the opportunities that lie ahead are just as exciting. Given such large and global markets, the Company competes with large companies around the world, many with their own significant technical capabilities and significant capital. This dynamic competitive landscape and the Company's rapid pace of innovation require unprecedented investment, flexibility and access to resources. Successfully innovating and executing against these large opportunities also requires careful stewardship by the Board and management team, and the Company's evaluation of capital return is conducted in the context of supporting the Company's continued business success and desire to deliver attractive returns to long-term shareholders If history is any indication, investors should be confident that Apple won't be shy about increasing its capital return program. If you recall, Apple first announced a quarterly dividend and share repurchase program of $45 billion in March of 2012 and subsequently more than doubled the program to $100 billion just one year later. That said, the proxy statement indicates that any changes to the program will be announced by March or April of 2014. As a point of interest, Apple notes that it has, to date, spent $23 billion on share buybacks and $43 billion in quarterly dividend payouts. Another shareholder proposal on the docket is whether or not Apple should create a new committee to keep tabs on human rights issues in Apple's supply chain. On this topic, Apple also urges shareholders to vote no. Apple relays that it's already doing a whole lot in this regard and that creating a new committee would be duplicative. Specifically, Apple emphasizes that it is "committed to the highest standards of social responsibility and human rights wherever we do business." The proxy statement reads in part: In addition to monitoring and driving improvements for workers in the supply chain, the Company places strong emphasis on education and worker empowerment initiatives. The Company has established a training program for new employees at the Company's suppliers to inform them of their individual rights, local laws and the Company's Supplier Code of Conduct. Millions of workers have participated in this training program. The Company also partners with educational institutions to offer free college-level courses to workers who make the Company's products. Hundreds of thousands of workers have attended these classes since 2008, and many have gone on to earn associate's degrees. The Company recently expanded this educational program to offer more opportunities for participants to work toward a bachelor's degree. ... In December 2013 the Company was awarded its 12th consecutive perfect rating from the Human Rights Campaign's annual Corporate Equality Index, which scores businesses based on lesbian, gay, bisexual and transgender workplace policies, and won the title of "Best Places to Work for LGBT Equality." The Board does not believe that establishing a committee is an effective way for the Company's practices and goals to continually evolve and improve in response to changing conditions. Instead, such an additional and redundant committee would distract the Board from its other responsibilities to the Company and its shareholders, while adding little value to the Company's existing commitment to human rights and social responsibility. The Company's existing governance framework has produced a strong commitment to human rights and progress that is evident in the Company's practices and policies.
CalPERS exec criticizes Icahn's plans for Apple stock
One very prominent Apple investor isn't happy with "activist investor" Carl Icahn and his plans to return more money to shareholders. Anne Simpson, head of corporate governance for the California Public Employees' Retirement System (CalPERS), was interviewed by Bloomberg yesterday and was outright angry with Icahn, saying, "We are uncomfortable with a raider coming into a company with a proposal to disgorge cash. Carl Icahn is a Johnny-come-lately." As of September 30, CalPERS owned 2.4 million shares of Apple worth about US$1.2 billion. Simpson says that CalPERS is happy with Apple's current method of handling cash, returning about $100 billion to shareholders through dividends and stock buybacks. "We like what they're doing. They have a significant program for returning money to shareholders. Carl Icahn is late to the party." Simpson's interview was a sign that the CalPERS fund will fight Icahn's proposal to raise the share price of AAPL by pumping up the stock repurchase plan. That might be a good thing for Apple; Icahn has a reputation for making hostile takeovers of companies, stripping them of assets and then walking away from the resulting chaos with a nice profit. Photo Credit: AP Photo/Shiho Fukada
Daily Update for December 13, 2013
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get some the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the player at the top of the page. The Daily Update has been moved to a new podcast host in the past few days. Current listeners should delete the old podcast subscription and subscribe to the new feed in the iTunes Store here.
Carl Icahn files shareholder proposal in effort to actualize larger stock buyback
Well, if there's one thing most can agree on when it comes to activist investor Carl Icahn, it's that he's persistent. In an exclusive interview with Time, the billionaire investor reveals that he recently filed a shareholder proposal to be raised at the company's next shareholders meeting. Its purpose? To get Apple to buy back even more of its shares on the open market. His measure calls for a share buyback and is in the form of a precatory proposal, which means that even if a majority of Apple shareholders approved, it would not be binding on the company's management. That's the typical approach for shareholder resolutions, even those coming from investors who are at odds with management. For his part, Icahn says he doesn't consider his proposal an indictment of Apple CEO Tim Cook, or the company's management, per se. "Tim Cook is doing a good job with the business," Icahn tells Time. "I think he's good whether he does what I want or not." But, says Icahn, referring to the company's huge cash stockpile, "Apple is not a bank." Back in October, Icahn had lunch with Cook where he championed a US$150 billion stock buyback. In a tweet sent out on Wednesday afternoon, Icahn noted that his new proposed buyback program is less than $150 billion. Apple, of course, finds itself in the enviable position of having more money than it knows what to do with. This past April the company announced its plan to increase its dividend and stock buyback program to $100 billion. Under Apple's current capital return program, it plans to buy back $60 billion worth of its own shares by 2015. As of Apple's most recent earnings report, the company has a cash pile of $147 billion. Addressing Icahn's proposal, Apple spokesman Steve Dowling issued the following statement to Time: Earlier this year we more than doubled our capital return program to $100 billion, including the largest share repurchase authorization in history. As part of our regular review process, we are once again actively seeking our shareholders' input on our program, and as we said in October, the management team and our board are engaged in an ongoing discussion about it which is thoughtful and deliberate. We will announce any changes to our current program in the first part of calendar 2014. Icahn currently owns 4.7 million shares of Apple.
Take-Two bid adieu to Icahn, three board seats for $203.5 million
Tuesday 26 November 800 lbs. lighter after getting rid of Carl Icahn and his three boys (including that iCahn mini) from the board. It's gonna be trans-fat and pasta tonight, I'm tellin' you. Food consumed today: What. Ever. I. Want. Boom! Morning in the 36-degree city that never sleeps. But I slept well last night. Stood on my balcony as the sun was rising, took the top off my silk pajamas and let the energy of the universe fill me. I couldn't be happier Diary, Three years after washing up in my board room, it's time to say goodbye to Carl Icahn and his flotsam. It wasn't cheap either, Di. It cost $203.5 million to clean them up, which was the purchase of 12.02 million shares of stock at $16.93. Not a bad return for Carl, who bought the stock at around $8 a share in late 2009. "With our ample cash and strong expected cash flow, we are able to pursue a variety of investment opportunities, including repurchasing our Company's stock," I said, officially. But, honey, you should have seen the crown I was wearing while I said it. "On behalf of our board and management team, I would like to thank Brett, James and Sung for their support, dedication and service to our organization. They leave Take-Two better positioned than ever for continued success." ...Now, get out.
Carl Icahn reportedly pushed Tim Cook for $150B Apple share buyback
The planned dinner between investor Carl Icahn and Apple CEO Tim Cook took place as scheduled last evening, and Icahn is reporting through Twitter that the dinner was "cordial" and that he pushed for Apple to bump its share buyback program up to US$150 billion. Icahn believes that Apple's share price is "extremely undervalued" and that the company should spend more of its cash to bolster it by purchasing more shares at the current price. The continued discussions between Icahn and Apple will most likely come after the next quarterly earnings call, which should happen sometime in the third week of October.
It's a date! Carl Icahn and Tim Cook to meet next Monday
After investor Carl Icahn made a big splash by purchasing about US$2 billion worth of Apple Stock last month, he said via Twitter that he was going to have dinner with Tim Cook to discuss the "magnitude" of Apple's share buyback program. CNBC is reporting that the two will be meeting Monday in New York City, although it may not be over dinner. Icahn isn't a "top 10" shareholder in the company, but his stake -- and influence -- is still impressive enough that Cook wants to meet with him. For more on the "date" and other breathless banter by CNBC's morning team, check out the video embed below.
Daily Update for August 23, 2013
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen. Subscribe via RSS
Carl Icahn meeting with Tim Cook to discuss AAPL share buyback
Activist investor Carl Icahn made news a few weeks back when he announced, via a tweet, that he had bought a large position in Apple, which is now reported to be about US$1.5 billion worth of Apple stock. Immediately, Apple's stock shot up and has been up ever since. But as an activist investor, Icahn never just buys stock hoping it will go up. He buys stock (and a lot of it) hoping to use his shares and knowledge to influence the direction of a company. Along those lines, Icahn has now tweeted that he has set up a dinner with Tim Cook in September: Spoke to Tim. Planning dinner in September. Tim believes in buyback and is doing one. What will be discussed is magnitude. - Carl Icahn (@Carl_C_Icahn) August 22, 2013 The "magnitude" he is referring to is about the scale of Apple's share buyback program, which Icahn wants to see accelerated. Currently, Apple is in the process of buying back $60 billion worth of its shares, but if it would buy back more, the value of one share of AAPL could go up significantly. Icahn has stated several times that he believes shares of AAPL are very undervalued.
Icahn's AAPL buyback advice could benefit Apple quickly, significantly
An analysis by Deutsche Bank's Chris Whitmore shows a potential US$50 billion stock buyback would boost Apple's earnings per share by as much as $4.25 in 2014, AppleInsider reports. This comes in the wake of a meeting last week between Tim Cook and investor Carl Icahn where the possibility of expanding the company's share buyback program was discussed. Icahn made headlines last week when he reportedly invested over $1.5 billion in the Cupertino-based tech giant. This strong vote of confidence had a rather dramatic effect on AAPL, boosting it by over 20 points in less than a day. Of course, the most important factor in further pushing Apple's stock upwards is the continued announcement of innovative products, and with an iPhone event reportedly scheduled for September 10, we won't have to wait long on that front.
Icahn reportedly invested over $1.5 billion in Apple, stake in company still less than 1%
While initial reports indicated that billionaire investor Carl Icahn invested US$1 billion in Apple stock, the Wall Street Journal is now reporting that Icahn may have put more than $1.5 billion into Apple. Recall that shares of Apple skyrocketed by over 20 points yesterday following word of Icahn's huge investment. In two separate tweets sent out yesterday, Icahn exclaimed that shares of Apple were extremely undervalued while also mentioning that he had a conversation with Apple CEO Tim Cook about the potential for a larger stock buyback. "This is a no-brainer to go buy stock in a company that can go borrow" at a low rate, Mr. Icahn said in an interview. "Buy the company here and even without earnings growth, we think it ought to be worth $625. In case you're unfamiliar with Icahn, he has a well-deserved reputation as a corporate agitator, or activist investor if you're inclined to be politically correct. Specifically, Icahn has a track record of investing heavily in companies and leveraging his large ownership position to demand the change that he wants. While some folks have expressed concern about Icahn investing heavily in Apple and getting all chummy with Cook, there's really nothing to worry about. The Wall Street Journal notes: Wielding influence at Apple won't be easy, or inexpensive, given a stock market value that currently stands at close to $450 billion. At that capitalization, Mr. Icahn's stake would be less than 1 percent. Meanwhile, shares of Apple are still thriving in the wake of Icahn's investment. In early trading today, shares of Apple are up nearly 10 points as the stock inches closer to $500. Just three weeks ago, Apple shares were trading at $418. Per usual, it's a wild ride for Apple investors.
Apple shares skyrocket by 20 points following investment from Carl Icahn
Shares of Apple shot up by more than 22 points on Tuesday following word that billionaire investor Carl Icahn had taken a large position in Apple. At one point during the trading day, shares of Apple reached $494 after starting the day trading at $471.50. In a tweet sent out by Icahn himself on Tuesday afternoon, the investor said: We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come. One hour later, Icahn tweeted the following: Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly. Interestingly enough, Apple spokesman Steve Dowling provided a statement confirming Icahn's meeting with Cook. The statement reads, "We appreciate the interest and investment of all our shareholders. Tim had a very positive conversation with Mr. Icahn today." Furthermore, it's being rumored, via Bloomberg's Sarah Frier, that Icahn's stake in Apple checks in at $1 billion. Icahn is, of course, a controversial figure, most recently due to his attempts to take over Dell. Lastly, and in what is likely a reflection of Icahn's business determination, and admittedly somewhat amusing as well, Icahn's Twitter tagline reads in part: "Some people get rich studying artificial intelligence. Me, I make money studying natural stupidity." With an estimated net worth that exceeds $20 billion, he clearly walks the walk.
Dell bidding war afoot as Blackstone Group and Carl Icahn both make offers (update: confirmed)
Thought that Dell buy out was a done deal? Well, the Blackstone Group and investor Carl Icahn clearly don't think so, with the Wall Street Journal reporting that both have contacted the committee of Dell's board just before Friday's shutoff deadline. The would-be bidders are reported to be working on their actual offer amounts, and in the process buying them four more days thinking time. Reuters reports that Blackstone's tentative offer is already in, according to sources, but at this time the company is yet to comment. Despite a recent slump in profits, Michael Dell surprised many when he announced his intention to buy back the eponymous firm in a deal with Microsoft for $24.4 billion. So, if the founder thought he had the keys to the old estate back, he might just have to wait a little longer. Update: The rumors were true, and now there's a PR to prove it. The Blackstone Group and Carl Icahn have indeed both made offers, and "Michael Dell has confirmed to the Committee his willingness to explore in good faith the possibility of working with third parties regarding alternative acquisition proposals."
Carl Icahn unloads his LightSquared debt, creditor talks trudge on
Carl Icahn is no stranger in this field -- he's been caught tussling with Motorola and bidding Yahoo's board adieu in recent years -- and most recently, he's managed to get caught up in one of the bigger wireless whirlwinds this planet has ever seen. Just months after Icahn swooped in to buy some $250 million in company debt at around 40 cents on the dollar, he has managed to offload that very chunk for 60 cents on the dollar. Not surprisingly, his cash coffers are growing in turn, despite LightSquared's position as a whole looking only marginally less bleak. According to a Reuters report, creditors have agreed to another week-long extension (until May 14th) in order to talk things over with head honcho Philip Falcone. As of now, the startup has around $1.6 billion in debt, and while talks may delay the pain, we're still not getting the impression that the FCC (or anyone else, really) is warming to its propositions. Then again, maybe Facebook can just buy it in an act of charity prior to its IPO.
Carl Icahn smells blood in LightSquared's spectrum, descends to feed on its carrion
Oh, the twisted web that continues to weave itself around LightSquared. After incurring a seemingly endless parade of regulatory and industry obstacles, the Philip Falcone-backed network is now facing yet another potential hurdle. Except this time, it's taken the shape of investor Carl Icahn: a business magnate notorious for swooping in on downtrodden companies (see: Time Warner) and seizing control. And it appears the old man's pulled out his tried-and-true bag of tricks, securing a sizeable chunk of the fledgling 4G operation's debt following a value drop last year. What does this spell for Falcone? Well, the move could wind up positioning Icahn as a controlling force, steering the LTE operation away from its hedge fund founder's vision and into more profitable waters -- a welcome turn of events for the cash-strapped company. With FCC approval still pending, Sprint quietly retreating from its partnership deal and a looming fight for executive control, it's safe to say LightSquared's troubles have only just begun.[Image credit: Sarah A. Friedman]
