Icahn's shares are off-limits in Apple stock buyback plan
In his letter addressed to Apple Chief Executive Tim Cook published on Thursday, billionaire investor Carl Icahn said the tech giant would not be repurchasing shares from his stake. Icahn earlier proposed that Apple should launch a USD150 billion buyback program.
Icahn wrote, "There is nothing short-term about my intentions here."
A total of 4.7 million of Apple shares are currently owned by Icahn and his affiliates. The size of the stake was a 22% increase from the time Icahn had dinner with Cook in late September.
Icahn proposed a stock buyback program to Apple as he thought that the shares of the company are undervalued.
"Apple has the ability to do a $150 billion buyback now by borrowing funds at 3 percen. 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," Icahn said in August.