Activist Investor Carl Icahn Turns Up the Heat On Apple For A Buyback

He filed a precatory proposal calling for a vote to increase Apple's buyback program.

Activist investor Carl Icahn is at it again, taking to Twitter to pressure Apple into getting what he wants. He announced to his followers today that he filed a precatory proposal calling the Cupertino, Calif. company's shareholders to vote to increase Apple's buyback program, though not at the $150 billion level he had pushed for.

Icahn, who will grace the cover of Time when its new issue hits newsstands tomorrow, filed the proposal Nov. 26. "I'm not against the management of this company. But they’ve got too much money on their balance sheet," he told Time, adding that "Apple is not a bank."

Apple responded to the proposal by reiterating its $100 billion capital return program, including "the largest share repurchase authorization in history." While an Icahn tweet has the ability to move markets, Apple shares remained largely unchanged Wednesday afternoon.

[Image: Flickr user Vidya Crawley]

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  • marcoselmalo

    If it's true that Icahn's latest proposal is for a $50 billion buy back at the end of next year, then it's inaccurate to say he is "turning up the heat". It's the exact opposite, Icahn is turning it down, probably because he is seeing Apple realize the value he knew was "hidden". Apple is already in the middle of an aggressive buy back and it is executing near perfectly.

    Icahn's gig is to find hidden value and unlock it. In Apple's case, the value was hidden in plain sight. Icahn had a strategy for unlocking that value, but it has become unnecessary. I'm sure he's pleased as punch by all the recent news out of China, Japan, and retailers on Black Friday.

  • Rudy Lerma

    Icahn does not work for Apple. They should drop his tweet into the trash bin. What a creep!