Carl Icahn to give up on $50 billion Apple buyback after being shot down by advisory firm
Advisory firm ISS has now said that it recommends against Carl Icahn's Apple buyback proposal, according to recent reports. Apple CEO Tim Cook said last week the company has already opportunistically and aggressively begun buying back its own shares, having scooped up around $14 billion worth over the course of two weeks after its Q1 fiscal earnings were announced. Icahn's proposal would see the company returning cash to shareholders with a $50 billion buyback over fiscal year 2014. However, due to the recent recommendations, the billionaire investor has now given up on his ongoing buyback push.
In a letter from Icahn regarding the ISS recommendation, Apple's biggest shareholder said that although he was disappointed by the decision, he feels Apple's aggressive buyback plan will come very close to what he suggested anyway. Quoting the ISS in his letter, Icahn mentions how Apple is on track to buyback around $32 billion worth of shares in fiscal 2014, which according to the ISS is "one of the largest buybacks in history."
"In light of these actions, and ISS’s recommendation, we see no reason to persist with our non-binding proposal, especially when the company is already so close to fulfilling our requested repurchase target," Icahn said in his letter.
Cook previously said that more information on Apple''s buyback plan will hit in March or April, but from the sounds of it we already know Apple will come within $18 billion in shares of what Icahn was initially suggesting anyway.
(Image via Reuters)
Downloads and Drivers
From the Forums
Subscribe to TechSpot
Receive a weekly update of our best features and tech news you don't want to miss: