Investment guru Carl Icahn says he doesn't want to fight with the management of Apple, but he won't abandon his sizeable financial concern in the firm either. Icahn has been trying to get Apple to give some of its cash mountain to shareholders by buying back $150bn worth of shares and has been meeting with chief Tim Cook to try …
He represents everything that's wrong with stock market based capitalism.
He represents everything that's wrong.
"That is something I would… never even think of telling Tim Cook," he said, according to Reuters. "It has zero to do with the fact that I'm involved with Apple."
Surely it has everything to do with the fact he's involved with apple. If a main investor in one company convinced another company (where he is also an investor) to purchase the first company, could that not ring a number legal issues? IANAL
Anonymous Coward of 11:47 GMT, in the US, that situation would only be of legal concern to that main investor if his advice were based on non-public information. If his advice were based solely on information available to the general public, then no legal issues would be involved. I don’t know if the situation would be the same for a UK-based main investor.
Given that he only owns 0.4% of apple, perhaps Tim Cook should politely tell him to sod off and bother Dell, because we all know how that one worked out for Icahn!
I'm guessing that the reason he's not investing in Microsoft is that he doesn't think they'll listen to him at all. Just wait for there to be a new CEO and I suspect he'll magically get some stocks and try to leverage those against the CEO.
Then again he may also be looking at the fact that Bill Gates, Steve Balmer, and more are large share holders in microsoft so they'll quickly point out any padded whining waffle he happens to spout to try and increase his share value short term.
"Apple has all this money"
I don't know where he gets this idea from. Apple has almost no cash available. In fact, it had to raise money from bonds to pay its dividend. All the cash Apple is hoarding is overseas, and Apple cannot bring it back into the US without paying tax on it.
What Icahn is proposing is borrowing money on the basis of future presumed returns, and give that money to investors. It's kind of the reverse of investing for the future.
Re: "Apple has all this money"
Oh Apple does have cash and lots of the stuff but cannot bring it in to the US otherwise it will be taxed. On the subject of Carl Icahn, I wonder if any of his ancestors came from Edinburgh and were called Burke or Hare ?
Re: "Apple has all this money"
Apple does have huge stockpiles of cash 'hidden' away in 'tax efficient' shell companies around the globe.
The bond issue was just the latest tax evasion tactic they used to prevent themselves from paying even a tiny amount of their tax that would otherwise been due....
Re: "Apple has all this money"
I don't get why he believes that giving money back to rich people is the best use of the money for Apple.
Not investing in MS
Is that because he fucked up with Yahoo and got in a strop when MS didn't buy them out as he had planned for?
He does not presume to tell Apple to buy a company with a market capitalisation of $5bn, but does presume to tell Apple how to spend $150bn?
For someone with less that 0.5% of a company he has a lot to say...
At least Apple 'make' real stuff rather than many of these Wall Street types who do what many would regard as gambling (often with other peoples money).
I really don't get why Tim actually meets up with him. He only 0.4% for gods sake! He should just tell him to stop bothering him, hes got more important things to deal with. If Steve Jobs was still around, I wonder if he would have given him the time of day? I think not.
From the looks of things, it isn't the size of his current holding which makes him trouble, it is the manner in which he whips up a sizable 'gang' of other shareholders to also put pressure on. 'Activist' investor sums him up very well. TBH, he is the epitome of capitalism. I think Dell dealt with him pretty well.
If Steve Jobs was still around, I wonder if he would have given him the time of day? I think not.
Icahn isn't stupid. He knows that. That's why he didn't bother with Apple until after Steve had popped his clogs.
Tim isn't stupid either. He's not going to give Icahn what he wants, he's just being polite because being polite doesn't cost him anything and potentially avoids a very public fight.
Is right about one thing though
""I am very cautious on equities today. This market could easily have a big drop," he said.
"Very simplistically put, a lot of the earnings are a mirage. They are not coming because the companies are well run but because of low interest rates.""
Well, this is one thing that's right. Twitter, Pinterest, Dropbox...
Stock price bubble bursting
He wants his cut before it disappears in a puff of vaporizing digits.
The problem Apple has is most of the cash mountain is offshore to use it they would have to take it back to America and pay tax on it.
ICAHN is not an idiot
Carl is actually ringing the bell for another stock collapse. Companies like Apple and others should pay dividends. That is the reason people invest in companies, for a payoff. So much is made of stock price which is totally irrational. Anyone that actually believes Apple is the most valuable company on the planet might reconsider if the electricity went out for week or more. Then water and petrol would be more valuable. You can always eat your (unfortunate) neighbor, but water is essential. energy sources are essential for civilization. While on one hand, the i(product of choice) is a fancy toy, it is very useful in civilized society.
Apple is a dying animal (no matter how strong and powerful it is at the present) and Icahn is the wolf circling. Kind of poetic really.
Interesting that Chrome's spellchecker knows "Icahn", does he own shares in Google?
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