Bullish activist-investor Carl Icahn is back again! In a tweet sent earlier today, Icahn noted that he plans to send Tim Cook an open letter tomorrow. The contents of this letter are unknown, but Icahn promises it will be “interesting,” to say the least.
In another tweet Icahn gives himself (who else?) credit for helping raise Apple’s share price by more than 50%. Apple shares traded up above 1.7% following the message.
Tmrw we’ll be sending an open letter to @tim_cook. Believe it will be interesting.
— Carl Icahn (@Carl_C_Icahn) October 8, 2014
Just over 1yr ago we tweeted our large position in $AAPL & belief the company extremely undervalued. Since then, stock is up 50.6%
— Carl Icahn (@Carl_C_Icahn) October 8, 2014
As of earlier this year, Icahn owned a massive $4.4 billion stake in Apple, giving him more theoretical leverage than practically any other investor. Well known for trying to take on an active role helping dictate the direction of the companies he invests in, last year he rallied Apple shareholders to demand a stock buyback.
While Icahn eventually backed down after influential proxy adviser ISS’s call against the proposal, there was little doubting he’d make his presence felt again at some point.
Based on the positive nature of his tweets earlier today, Icahn’s open letter to Cook sounds as though it will fall under the heading of endorsing the company’s current direction. How “interesting” would that be, though? Tim Cook may want to make sure his dinner diary isn’t fully-booked, just in case.
Via: Barron’s
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
9 responses to “Bullish investor Carl Icahn promises open letter to Tim Cook tomorrow”
Oh, screw Icahn.
If Apple was smart they would cut all ties to Carl Icahn and run as far away from him as if he was the #1 cause of Ebola…….
Can’t run or cut ties from an investor, but they shouldn’t list n to thing he says. Tim and the board should should blow him off in the most pointed way possible. “Some people don’t understand the power of our company.” The fact is listening to Icahn will be good shareholders in the short term as his leverage schemes wring out every penny of value for a few years. Then all the focus on banking tricks on paper will mean the core of the company will be neglected and it will fail. Icahn doesn’t build businesses and societies. He builds personal wealth at the expense of the future.
I agree with you. I think every company that iCahn owns stock in should blow him off. Look at what he did to eBay, now they are breaking up because he couldn’t keep his big pie hole shut.
I wish he’d get Ebola and leave us alone.
Carl Icahn wouldn’t give a dead rat’s ass for long term viability of any of the companies he currently invests in. He’s more interested in a short term score than long term sustainability and growth and his “activist investor” advice proves it. Once a corporate raider, always a corporate raider. Zero ethics. Zero conscience.
Here’s his letter: “I’m rich! Pay attention to me! Hey, you’re not paying attention to me! Didn’t I just say I’m rich!” (Also applies to Donald Trump.)
What did Icahn ever build? All I remember him doing is asset strip, pocket his profit and run. Remember TWA? Didn’t he strip that?
He’s got no relevant experience to offer Apple.
He’s the sort of guy who shakes your hand and fingers your wallet at the same time.
And talk about hubris! He thinks he drove up Apple’s price all on his own! How about x gazillion people buying an Apple product?
Dear Tim,
I think you should use Apple’s cash to buy back shares and make me richer.
Love
Carl