Carl Icahn Puts Pressure On Apple To No Avail - The Jewish Voice
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Carl Icahn Puts Pressure On Apple To No Avail

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Carl Icahn, 77, American businessman and investor, calls out
Carl Icahn, 77, American businessman and investor, calls out
When Carl C. Icahn begins creating noise about a company, executives have learned it is wise to listen. Though, this time, in his campaign for Apple to return more money to shareholders, he might be barking up the wrong tree.

Major investor Icahn intended to increase the pressure on Apple on Thursday, with a letter he sent to Timothy D. Cook, its chief executive, on his own Web site. Mr. Cook received the letter on Wednesday and immediately began an offer to buy back $150 million of its shares at $525 a share.

None of Mr. Icahn’s public calls were responded to, which began in August when Mr. Icahn first disclosed he had a stake in the company.

Some analysts say that with a net cash position of $130 billion, Apple could afford to return more money to its shareholder. But the company has already undertaken a $100 billion share buyback and dividend program and may not feel it needs to do anything more for now.

Apple’s remaining cash pile is enormous, and some shareholders are likely to agree with Mr. Icahn’s view.

“It’s almost like keeping money in your checking account,” said Toni Sacconaghi, a financial analyst with Sanford C. Bernstein & Company, according to The New York Times. “There’s an opportunity you can be earning more with that.”

“Just because they can, it doesn’t mean that they will,” said Robert Cihra, an analyst with Evercore. “I don’t know whether anyone can exercise any power over Apple, given their size,” he added.

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