Corporate raider Carl Icahn on Tuesday said he has taken a “large position” in Apple Inc, calling the US tech giant “extremely undervalued.”
Icahn, who is in the midst of a fierce battle over computer maker Dell Inc and has a history of taking stakes in firms to seek shakeups, announced his move on Twitter.
“We currently have a large position in APPLE,” he tweeted. “We believe the company to be extremely undervalued. Spoke to [Apple chief executive] Tim Cook today. More to come.”
In a second tweet moments later, Icahn said he would press Apple to increase its stock buyback, in which the company purchases its own shares in a bid to boost its value.
“Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly,” Icahn tweeted.
Apple shares, which had been flat most of the day, jumped on the news and closed up 4.75 percent at US$489.57.
Asked about the Icahn action, Apple spokesman Steve Dowling said in a statement: “We appreciate the interest and investment of all our shareholders. Tim had a very positive conversation with Mr Icahn today.”
Shares in Apple last year surged to a record above US$700, but have been in a deep slump over concerns the maker of the iPhone and iPad has been losing its edge in innovation.
Apple remains the most valuable publicly traded company with a market capitalization of more than US$440 billion despite its steep decline in recent months.
Earlier this year, Apple yielded to pressure from the hedge fund Greenlight Capital, agreeing to return about US$100 billion to shareholders over the next two years, including US$60 billion in share repurchases.
Apple shares posted gains on Monday after a report saying the California tech giant was set to announce its next iPhone at a Sept. 10 event.
The Dow Jones news Web site AllThingsD on Sunday reported that Apple scheduled an event next month where it will announce its newest iPhone in an effort to regain ground lost to Samsung and other smartphone makers, most of which use the Google Android operating system.
Speculation has centered around whether Apple will shift its strategy to include a lower-cost handset to appeal to more consumers, especially in emerging markets.
A recent IDC survey showed Apple’s share of the global smartphone market slipped to 13.2 percent in the second quarter, from 16.6 percent a year ago, while Android’s share rose to 79.3 percent.
Icahn has been embroiled in a battle over Dell, seeking to block a private equity buyout led by founder Michael Dell, which Icahn says undervalues the company.
Just a few years ago, the millennial generation — generally defined as those born from the early 1980s through the mid-1990s — was synonymous with youthful rebellion. However, now, as the millennials ease into early middle age, they are finding their path out of their parents’ basement to be a lot harder than it was for earlier generations. The fundamental problem is that millennials are not building wealth. The wealth of the median US household headed by someone 35 or younger has actually shrunk in inflation-adjusted terms since the mid-2000s, even as the wealth of older Americans has continued to grow. An
Apple Inc’s decision to stop using Intel Corp processors in its Mac computers and switching to its own chips might benefit Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and boost Taiwan’s high-tech exports, Australia and New Zealand Banking Group (ANZ) said in a note on Tuesday. The US tech giant announced the “Apple silicon” initiative at its annual Worldwide Developers’ Conference, which started on Monday. The company said the first Mac powered by its own chips would debut by the end of this year and all product lines might shift to the new architecture in the next two years. TSMC is likely to
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price