Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Apple shares jump after Carl Icahn tweets

James W. Manning (via SMH) | Aug. 14, 2013
Apple stocks soared to a six-month high and boosted the company's market value by $US12 billion to $US444.8 billion, following two tweets from 77-year-old US billionaire investor Carl Icahn.

Icahn, whose wealth is estimated by Forbes magazine to be $US20 billion, said Apple "has the ability to do a $US150 billion buyback now by borrowing funds at 3 per cent".

"If Apple does this now and earnings increase at only 10 per cent, the stock -even keeping the same multiple currently -should trade at $US700 a share."

Apple shares earlier posted gains on Monday, following reports the company planned to releasea new iPhone modelat a September 10 event, and new iPad models later in the year.

Icahn, who has a history of taking stakes in firms to seek shake-ups, is currently in a battle with Dell as he tries to stop the ailing PC maker from selling itself to founder and chief executive Michael Dell. Icahn has previously clashed with management at Yahoo!, Time Warner and BlockBuster.


Previous Page  1  2 

Sign up for CIO Asia eNewsletters.