Icahn to put shine back on Apple?
Maverick investor eyes iMaker, believes larger buyback can lift stock to $700
Maverick billionaire investor Carl Icahn yesterday announced via Twitter that he has acquired an undisclosed number of shares in Apple Inc and that he believes the Cupertino-based iPhone maker to be undervalued, online media reported.
Icahn has minted a reputation for upsetting company boardrooms including those at Yahoo!, Motorola and Time Warner. His most recent interest has been in Dell Inc, which he is suing in a Delaware court to prevent its founder Michael Dell securing a change in shareholder voting rules that would allow the company to go private.
While the size of his Apple stake remains a mystery, he described it as a "large position" and his statements sent positive ripples through the market as the company's share price rose 4.75%, to close at $489.57.
Icahn is new to Twitter, having opened his account in June. His tweets yesterday included a claim that he had had a "nice conversation" with Apple CEO Tim Cook, in which he urged an escalation in the company's share repurchase initiative.
According to Reuters, Icahn believes Apple stock could reach $700 a share if Cook were to take his advice, which would leave the shares only slightly shy of their September 2012 peak of $702.10.