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Activist investor Icahn takes stake in Apple
by James Phillipps on Aug 14, 2013 at 08:03
Activist investor Carl Icahn has taken a large position in Apple and is to push the company to buy back more shares.
Billionaire Icahn announced the move on Twitter, saying: ‘We currently have a large position in Apple…Had a nice conversation with [Apple CEO] Tim Cook. Discussed my opinion that larger buyback should be done now. We plan to speak again shortly.’
The news sent Apple’s share price up more than 4% and above January levels when it announced disappointing earnings. Icahn said he believes the tech giant is ‘extremely undervalued’ and will agitate for the company to unlock more of its vast cash reserves.
Apple has already faced down hedge fund Greenlight Capital over its dividend policy, but did in April pledge to more than double its commitment to buying back shares and raising its divi, putting $100 billion behind the promise.
Icahn is no stranger to the tech sector, having previously bought large or controlling stakes in both Motorola and Viacom and he has most recently been battling Dell’s management over their buyout plan.
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