Icahn pressures Apple CEO on bigger share buyback

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Billionaire activist investor Carl Icahn said he met Apple CEO Tim Cook Monday night and pressured the executive to increase the company's share buyback.

Apple CEO Tim Cook speaks on stage during 

an Apple product announcement in Cupertino, 

Calif. (Photo: Justin Sullivan, Getty Images)

"Had a cordial dinner with Tim last night. We pushed hard for a 150 billion buyback. We decided to continue dialogue in about three weeks," Icahn wrote on Twitter Tuesday.

In April, Apple said it would return as much as $100 billion to shareholders by the end of 2015, $60 billion of which would be through a share buyback program. By June, Apple had re-purchased about $16 billion of its stock.

However, Icahn said that was not enough. The stock is undervalued and Apple has a lot of overseas cash, so it can afford to borrow heavily to finance a larger buyback, he argued on CNBC Tuesday.

Apple shares rose 2.1% to $486.60 in afternoon trading Tuesday.

An Apple spokesman did not respond to an email seeking comment on Tuesday.

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Courtesy: USAtoday

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