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

The essential guide to IT transformation

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. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?