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Carl Icahn Pushes For Another Apple Stock Buyback

Activist investor Carl Icahn wants Apple to do more with its $133 billion in cash. A stock buyback would increase the value of remaining shares.
Posted at 1:03 PM, Oct 09, 2014

Activist investor Carl Icahn wants Apple to do more with its pile of cash ... again. In an open letter published Thursday, Icahn maintains the company is undervalued and would do well to buy back its own stock.

SCARLET FU FOR BLOOMBERG: "The basic gist of this, of course, comes back to this idea of using up some of its extra cash. Icahn talks about the persistently excessive liquidity of $133 billion net cash on Apple's balance sheet."

Icahn writes"The more shares repurchased now, the more each remaining shareholder will benefit from that earnings growth."

It goes almost without saying Icahn's investment firm would profit from an increase in Apple shares, of which it owns nearly 1 percent.

JIM CRAMER FOR CNBC: "This is shareholder democracy. He's got three votes that he thinks he has, versus one. If I were reading this and I were Tim Cook, I would say, 'Would you please give me a break?'"

Which seems to be Apple's take as well. Its response reads in part: "As we've said before, we will review the program annually and take into account the input from all of our shareholders."

And the rest of the tech press isn't surprised to see Icahn pushing for a buyback. He did the same thing in December of last year, going so far as to attempt a shareholder proxy vote on the issue.

Apple did buy back $14 billion in shares at the beginning of the year, and Icahn eventually backed off the pressure. (Video via The Wall Street Journal)

But short of the "we'll think about it" supplied to the media this time around, Apple doesn't appear ready to give an official response.

This video includes images from Getty Images.