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Carl Icahn pushes for $150bn Apple share buyback | |
(34 minutes later) | |
Billionaire investor Carl Icahn has made another push for Apple to buy back its stock, saying the move will help boost the value of Apple's shares. | Billionaire investor Carl Icahn has made another push for Apple to buy back its stock, saying the move will help boost the value of Apple's shares. |
Mr Icahn, who has built up a big stake in Apple, urged the firm to embark on a $150bn (£92.5bn) share buyback. | Mr Icahn, who has built up a big stake in Apple, urged the firm to embark on a $150bn (£92.5bn) share buyback. |
His suggestion comes as Apple's shares have been hurt by concerns over growth - down 30% since hitting a record of $702 in September 2012. | His suggestion comes as Apple's shares have been hurt by concerns over growth - down 30% since hitting a record of $702 in September 2012. |
Apple has said it will return $100bn to shareholders by the end of 2015. | Apple has said it will return $100bn to shareholders by the end of 2015. |
The firm said in April this year that it would do so by raising dividends and buying back shares. However, at a dinner with chief executive Tim Cook, Mr Icahn urged the company to undertake a much bigger buyback. | |
"Had a cordial dinner with Tim last night. We pushed hard for a 150 billion buyback. We decided to continue dialogue in about three weeks," Mr Icahn tweeted. | "Had a cordial dinner with Tim last night. We pushed hard for a 150 billion buyback. We decided to continue dialogue in about three weeks," Mr Icahn tweeted. |
Apple's shares rose 2.4% on Tuesday after Mr Icahn's remarks. | Apple's shares rose 2.4% on Tuesday after Mr Icahn's remarks. |
Earlier this year, the Reuters news agency quoted Mr Icahn as saying that Apple had the ability to undertake a $150bn buyback "by borrowing funds at 3%". | Earlier this year, the Reuters news agency quoted Mr Icahn as saying that Apple had the ability to undertake a $150bn buyback "by borrowing funds at 3%". |
"If Apple does this now and earnings increase at only 10%, the stock - even keeping the same multiple currently - should trade at $700 a share," he was quoted as saying at the time. | "If Apple does this now and earnings increase at only 10%, the stock - even keeping the same multiple currently - should trade at $700 a share," he was quoted as saying at the time. |
Apple has a cash pile of nearly $145bn, but a large amount of that is held offshore. | Apple has a cash pile of nearly $145bn, but a large amount of that is held offshore. |
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