Date
24 August 2017
Carl Icahn says Apple to buy back as much as US$100 billion in stock. Photo: Bloomberg
Carl Icahn says Apple to buy back as much as US$100 billion in stock. Photo: Bloomberg

Icahn urges ‘undervalued’ Apple to buy back more shares

American activist investor Carl Icahn has urged Apple Inc. to buy back more shares using its US$133 billion cash pile, saying the stock should double its value.

“We believe Apple is dramatically undervalued in today’s market, and the more shares repurchased now, the more each remaining shareholder will benefit,” Reuters quoted Icahn as saying in a letter to Apple’s board released on Thursday.

Icahn, who pledged to keep his own stock out of any repurchase, said Apple stock should be trading at US$203.

“At today’s price, Apple is one of the best investments we have ever seen from a risk reward perspective, and the size of our position is a testament to this. This investment represents the largest position in our investment history,” Icahn wrote.

In an interview on CNBC, Icahn urged Apple to buy back as much as US$100 billion in stock, adding that hoped other investors would also press for a buyback.

The company split its stock seven for one in June and in April it raised its share repurchase authorization to US$90 billion from US$60 billion previously.

Apple shares have gained 25 percent since January. Icahn owns about 53 million Apple shares.

Meanwhile, the company’s plans to introduce a larger-screen iPad appear to have been pushed backs as suppliers struggle to make enough new iPhones to meet strong demand, the Wall Street Journal reported.

They had originally planned to start producing the new tablet version in mass volume in December, the newspaper said.

– Contact us at [email protected]

CG

EJI Weekly Newsletter

Please click here to unsubscribe