Apple Inc. (NASDAQ:AAPL) continues to be under pressure from activist investor Carl Icahn, who wants to see the company do a $150 billion share buyback as soon as possible. Today CNBC reports that Icahn has had yet another “good conversation” with CEO Tim Cook regarding his proposed share buyback.
Icahn’s been working on Apple for a while
Cook has apparently been studying the buyback proposal from Icahn. The two met in September to talk about it, although Icahn said that at that time, Cook didn’t seem to be interested in it. Icahn ratcheted up the pressure on Apple Inc. (NASDAQ:AAPL) and Cook last month by writing a letter to them and publishing it on his new website. He has also tweeted several times about his proposal, adding billions to Apple’s market cap every time.
Icahn said recently he would continue pushing his $150 billion share buyback proposal and possibly even initiate a proxy battle in an effort to push it through. He said they would test the idea of a proxy battle with other shareholders and begin one if it looked like they would win.
Icahn holds $2.5 billion in Apple
Icahn has said his position in Apple Inc. (NASDAQ:AAPL) is worth about $2.5 billion. He also said that he plans to add to his position, so the next regulatory filing from his firm will certainly be very revealing when it is released through the Securities and Exchange Commission.
Carl Icahn believes shares of Apple Inc. (NASDAQ:AAPL) would trade at around $700 a share if the company completes his $150 billion share buyback proposal. The company’s stock peaked at $705 more than a year ago. Icahn has pledged not to sell his Apple shares if the company decides to follow through with his buyback proposal.
Calls against Icahn’s view of Apple
The more Icahn pushes for a massive share buyback from Apple Inc. (NASDAQ:AAPL), the more people seem to be voicing their views against him. Business Insider’s Henry Blodget, Pimco founder Bill Gross and analysts at Longboard are among those who oppose Carl Icahn’s view.