Mr. Icahn posted a letter to the Apple CEO Tim Cooper on his own website, which reveals that he had raised his share in Apple Inc. and pushing the company for a massive $150 billion buyback
Carl Icahn, the American business magnet, is found to raise his Apple investment by 22%, taking his share value to 4.73 million, and trying to push Apple for a massive $150 million buyback.
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.