Carl Icahn to Dine With Apple CEO Tim Cook in September
The activist investor, who recently purchased a stake in Apple valued at more than $1.5 billion, said Thursday that he has arranged to meet with Cook next month. The topic of discussion: A share buyback.
“Spoke to Tim,” Icahn tweeted. “Planning dinner in September. Tim believes in buyback and is doing one. What will be discussed is magnitude.”
That’s an issue about which Icahn has strong opinions. He feels that Apple’s stock could rise as high as $700 if it buys back shares now by borrowing $150 billion at a 3 percent interest rate to fund the purchase. “If Apple does this now and earnings increase at only 10 percent, the stock — even keeping the same multiple currently — should trade at $700 a share,” he told Reuters last week.
Apple shares have risen about 10 percent this month, a significant portion of that rise following the disclosure of Icahn’s Apple stake. At $503.24, Apple shares are up .21 percent as I write this.
Apple declined comment on Icahn’s latest tweet.
Spoke to Tim. Planning dinner in September. Tim believes in buyback and is doing one. What will be discussed is magnitude.
— Carl Icahn (@Carl_C_Icahn) August 22, 2013