updated 12:44 pm EST, Wed January 22, 2014
Investor continues to push for stock buyback program
Carl Icahn's investment firm has acquired another $500 million in Apple stock during the past two weeks, and now holds over $3 billion in Apple shares, according to a Twitter post by the investor. In other posts, he calls investing in Apple a "no brainer" at its current share value, and continues to push for an expanded share buyback program. Icahn claims that Apple is "doing great disservice to shareholders," and promises another letter on the topic in the near future.
Apple is already engaged in a buyback program that will cost it $60 billion by the end of 2015. Icahn wants the program to grow to by another $50 billion, and have that take effect in 2014. Apple is officially opposing the idea, but will have to contend with a proposal vote at its annual shareholders' meeting, scheduled for February 28th. While the proposal would only be advisory if enacted, it could put pressure on Apple executives.
The company would have to go deeper into debt in order to finance Icahn's buyback. Another reason for opposition may be Apple's stated philosophy about its cash reserves, which is that it wants to keep them for deals, business acquisitions, and as a fallback in tough times.