In a tweet posted earlier today, activist investor Carl Icahn confirmed that he now has a $3 billion position in Apple, up from about $2.5 billion in late October, confirming that has added about $500 million more to his Apple investment in the last few weeks (via The Wall Street Journal). He also added that Apple needs to significantly increase its stock buyback program, and that he is planning to release a letter in the coming days that again will call for an increased buyback.
Icahn, who is planning to push again for more share buybacks ahead of Apple’s expected earnings release on Monday, is now among the top 15 Apple shareholders and represents more than 0.6% of shares outstanding. Back in August, Icahn said he had taken an investment and began calling for a massive buyback. Apple already had announced what it says is a record share buyback and pledged to review its plan.
The billionaire investor is now planning to release a letter in the next few days calling for an increased buyback, which would mark the ‘latest volley between him and Apple’ over the company’s $150 billion cash hoard.
In the interview, Mr. Icahn said he is planning to release a letter in the coming days that again will call for an increased buyback.
“It shouldn’t be just a decision by the board backed up by some investment banker that might have other agendas,” Mr. Icahn said about Apple’s buyback decisions to date. “They are doing great disservice to their smaller investors…The large ones can afford to buy the stock; the smaller ones can’t.”
Even though Apple is currently buying back shares, it seems the pace and amount isn’t satisfying Mr. Icahn.