Icahn folds, withdraws sketchy $50 billion AAPL stock buyback grab

Ichan folds, withdraws sketchy $50 billion Apple stock buyback grab

Carl Icahn has withdrawn his proposal for a $50 billion share buyback from Apple after a recommendation against the plan from advisory firm Institutional Shareholder Services. While disappointed at the recommendation, Icahn said that he did not disagree with ISS's assessment of the situation. Apple has already purchased $14 billion of its own stock this year, and is on track to buyback $32 billion in shares this fiscal year. Because of this, Icahn and his firm saw no reason to continue with their proposal, according to Icahn's letter:

As Tim Cook describes them, these recent actions taken by the company to repurchase shares have been both “opportunistic” and “aggressive” and we are supportive. 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.

What do you think of Icahn abandoning his buyback proposal? Let us know below in the comments.

Source: Shareholders' Square Table

Joseph Keller

Joseph Keller is a news reporter for iMore. He's also chilling out and having a sandwich.

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Icahn folds, withdraws sketchy $50 billion AAPL stock buyback grab

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Please.. if he thought he had leverage to force more, he would have.. he only agrees because he'd look like an idiot if he didn't at this point..

When you own less than .5 percent of 1 percent, it is rather difficult and meaningless trying to assert yourself into a meaningful conversation with a company board and CEO. From the very beginning, trying to push around a behemoth like Apple means that you, (whoever you are), must posses a large enough financial stake in that company. None of these bullet points were ever in Carl Icahn's favor. Pushing around smaller companies for one's financial gain is very different from pushing around an astute and the #1 technology company in the world with $159 billion in the bank.

Icahn is not interested in the company at all, just short term profit. There's nothing illegal in that, and despite crazy media he just can't manipulate Apple.

I'm please to see that he gave up.

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Kind of sad if the accelerated buyback schedule was just to placate Ichan, but it is a small price to pay if the alternative end game would have been his ludicrous plan to take on debt to finance a pointless larger buyback.

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Well glad to see this happen. I think each respect one other enough to not let this go any longer.

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