Carl Icahn Pushes Apple for $150 Billion Stock Buyback

Consumer Electronics

Published: October 1, 2013 11:00 am

Carl Icahn no longer has Michael Dell to go after, so his attention, while much less vocal, now is heading back toward Tim Cook and Apple Inc. (NASDAQ: AAPL). Icahn wrote on Twitter that he is pushing for a $150 billion stock buyback and will speak again in the coming weeks.

What investors and traders need to know is that activist investor Carl Icahn’s effort in Apple is not exactly new. Icahn also did not suggest nor did he say that he had purchased more shares of Apple. While he has talked about a buyback before, that $150 billion sum may get people talking. Other than having dinner, there is perhaps nothing all that new in this.

Icahn’s tweet ‏(from his @Carl_C_Icahn handle) said:

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.

Carl Icahn is taking this to the media as well and is scheduled for an appearance mid-day on CNBC.

Apple shares have traded up so far on Tuesday, despite a government shutdown. The stock was up 1.8% at $484.33 in late morning trading. Note that a $150 billion buyback compares to a stock market capitalization rate of $440 billion.

24/7 Wall St. also pointed toward several iPhone 5 suppliers that were featured very favorably in an analyst research report.

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