Oct 25 2013, 9:48am CDT | by Ehsanul Haque Kanan
According to Apple Balla , a letter posted by Carl Icahn to Tim Cooper, reveals that the tycoon desires Apple to use a self-tender method, with a view to buying back the stocks. However, he refuses to sell his shares.
He said, “There is nothing short term about my intentions here.”
He reveals that a buyback of $525 each share will dramatically increase Apple’s share value after 3 years. According to him, the enhanced value will be a massive $1,250!
Mr. Icahn wrote in the letter, “As we proposed at our dinner, if the company decided to borrow the full $150 billion at a 3% interest rate to commence a tender at $525 per share, the result would be an immediate 33% boost to earnings per share.”
He added that the amount is “not simply large enough given that Apple currently holds $147 billion of cash on its balance sheet.”
Mr. Icahn’s statement has been criticized by a lot of people. Bill Gross, the founder and managing director of Pacific Investment Management Co. LLC, tweeted “leave Apple alone & spend more time like Bill Gates. If Icahn’s so smart, use it to help people not yourself.”
Mr. Icahn hit back all the critics by saying:”A lot of critics just keep saying why doesn’t Icahn just leave our companies alone. To me that is like saying: Why didn’t Teddy Roosevelt leave the monopolies alone when they were strangling our economy.”
However, Apple hasn’t been found to take any decision.
Ehsanul Haque Kanan
Ehsanul Haque Kanan is covering consumer electronics with passion. He is especially an avid follower of all things Apple.
blog comments powered by Disqus
News | Apple Inc. | Technology | Apple | Electronics | Person Career | Quotation | Economy of the United States | Buybacks | Carl Icahn | Boost | Company | Photo | image | Apple CEO | Stocks | letter | Tim | rate | images | Earnings | trends | Use | with | Found | daily news | Files | Reveals | remove | Full | Statement | Sell | Hit | save | Raise | Dinner | After | Not | Buying | Wrote | Value | Just | Sites | Title | Like