Feeds

Icahn slurps another $500m in Apple shares, demands buyback AGAIN

Activist investor still trying to get fruity firm to give more back to its shareholders

Top 5 reasons to deploy VMware with Tegile

Activist investor Carl Icahn has yet again called on Apple to start scooping a few handfuls off its mountain of cash and handing it back to shareholders. His latest call came after he upped his stake in the fruity firm by a whopping $500m.

The agitating stockholder tweeted that he'd upped his share of the fruity firm to $3.6bn and he still wanted the company to start thinking about a much bigger share buyback scheme to get money back into investors' pockets:

In a seven-page letter to fellow Apple shareholders, Icahn said that the company's suggestion that it needed to keep all its money because of the competitive tech landscape and its own rapid pace of innovation was "almost irrational".

"We find its position overly conservative (almost to the point of being irrational), when we consider that the company had $130 billion of net cash as of September 28, 2013 and that consensus earnings are expected to be almost $40 billion next year," he wrote. "Given this massive net cash position and robust earnings generation, Apple is perhaps the most overcapitalised company in corporate history, from our perspective."

Icahn added that if Apple didn't want to bring money home from its overseas operations to pay for his proposed additional $50bn share buyback, because it didn't want to pay tax on repatriating it, it would be both easy and cheap for the company to borrow the money.

Apple has been resisting Icahn's efforts to up its share buyback scheme for months now. The company is already repurchasing $60bn worth of stock and has said that it has already returned $43bn to investors in dividends and repurchases.

But Icahn, who is famous for agitating for change at major corporations, wants more from Cupertino.

Apple isn't the only tech firm Icahn would like to see some changes at either. Earlier this week, he urged eBay to consider spinning off PayPal, despite owning less than a one per cent stake in the firm. eBay said that it appreciated the suggestion, but it wanted to hang on to the unit for now. ®

Beginner's guide to SSL certificates

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.