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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.
Battle for Dell continues as shareholders Icahn, Southeastern partner on an offer
Michael Dell's deal with Microsoft to buy back the computer company bearing his name hasn't gone through yet, and tonight two of its largest shareholders joined forces on another option. Carl Icahn and Southeastern Asset Management have both opposed the $24.4 billion / $13.65 per share buyout proposal from the start and have an alternative proposal: a $12 per share dividend, funded by Dell's $9 billion in cash and $5.2 billion in new debt. If that's not accepted, the two also claim to be ready to put up a slate of 12 directors ahead of Dell's annual shareholder meeting, or take their challenge to the courts. Even with the reported withdrawal of a counter offer from Blackstone Group, things remain complicated -- we'll wait and see if any of these threats go through, or if they successfully wrangle a better buyout offer from Dell, Microsoft & Co.
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]
Circuit City looks for a suitor, Blockbuster likely to be it
Oddly enough, the far-fetched proposal is apt to be accepted. Circuit City has reportedly solicited the services of Goldman Sachs to help "negotiate a deal," which will essentially put the troubled electronics retailer in the hands of someone else. As it stands, Blockbuster looks to be the most interested in picking up the pieces, with billionaire Carl Icahn (Blockbuster's largest shareholder) agreeing to finance the get-together. Of course, it looks as if Blockbuster may be the only outfit interested. Not like that's any surprise, however, as Best Buy itself is having to look to Europe to boost revenues with US consumer spending off from where it once was. The real question here is whether a Circuit City-Blockbuster combo would be the perfect concoction to turn things around for both flagging firms, or will we find that two sinking ships actually do go down faster when anchored to one another?
Carl Icahn and Motorola bury the hatchet
Good news coming from the Motorola camp? Say it ain't so! The long-standing feud between the flagging company and investor Carl Icahn has finally come to an end, and lo and behold, the pending litigation between the two has even been dismissed. Apparently the two parties managed to agree that (effective immediately) Keith Meister, a managing director of the Icahn investment funds and principal executive officer of Icahn Enterprises would be "appointed to serve on the [firm's board of directors]," and William R. Hambrecht, founder, chairman and CEO of WR Hambrecht + Co. and co-founder of Hambrecht & Quist, would be "nominated for election" during the 2008 annual shareholders meeting. Heck, Moto's even soliciting Mr. Icahn's input in dealing with the hopeful separation of businesses -- but then again, it would probably take advice from just about anyone given the current state of affairs.
Icahn still wants Motorola's handset biz spun off
Most folks would take a failed executive board bid as a hint that their controversial opinions aren't welcome within earshot of the boardroom, wouldn't they? Maybe not. Investor, financier, outspoken individual, and rich dude Carl Icahn has once again spouted off about Motorola's business model, reiterating his stance that Moto's handset biz should be spun off and sold for something on the order of $10 billion. Compared side by side with the entirety of Nokia -- the world's largest mobile manufacturer -- it actually comes off sounding a little silly: Nokia's got a market capitalization hovering around $145 billion. Yes, that would value Motorola's phone operations at less than 8 percent of Nokia, which either makes Icahn sound like a fool, or Moto sound like it has a lot of work to do if it plans to recapture number two from Samsung.
Icahn loses bid for Motorola board seat
Motorola's annual shareholder meeting took place last night, and from initial results, billionaire activist investor Carl Icahn was not elected to the company's board of directors. The fire between Icahn -- who owns 2.9 percent of Motorola's shares -- and MOTOMNGMNT has turned into a venomous circus recently. The mud from all that slinging was still fresh last night at the company's annual shareholder's meeting where Moto's board of directors was up for election. Although Motorola CEO Ed Zander responded to Icahn's failed bid by saying "we remain steadfast in our commitment to continue building value for all of our stockholders," that sentiment had not been flying with the feisty billionaire investor. Although final tabulation of board election votes is still not 100 percent final right now, it looks like Icahn will need another venue to light a fire under Motorola's butt as the company struggles to return to profitability.
Motorola slams back at Carl Icahn
Billionaire financier Carl Icahn has a history of investing in companies where he can start exuding his influence for reform. The latest saga in Icahn's quest for corporate justice involves Motorola, where he wants CEO Ed Zander out (now). Motorola's troubles recently have been amplified in the financial media, as the company can't seem to replicate its RAZR success to save its life. The magic seems gone, and Icahn is pitching for a board seat so that he can instigate some management changes. In other words, Zander should be worried -- very worried. If the wireless giant can't return to sustainable profitability like, yesterday, Icahn may press even harder. The pressure has been so intense that Motorola recently sent an open letter to shareholders where it dissed the man (well, to a point). One thing is for sure -- Motorola is not leaving the cellphone biz for the action figure market like we were playfully guessing recently.