Stock buyback proposal canceled in light of Apple’s recent actions
Wall Street behemoth Carl Icahn is seeing “no reason to persist” with his proposal that Apple buy more of its shares back, because the Cupertino giant is relentless. In his letter to Apple shareholders, he throws in the towel agreeing and disagreeing with Apple and the ISS at the same time.Reuters reported minutes ago that proxy advisory firms ISS and Egan-Jones were advising Apple shareholders to refuse Carl Icahn’s buyback proposal.
Apple stock holders were supposed to vote “yes” or “no” on the expensive buyback plan on February 28, at a shareholder meeting in Cupertino, California. But they no longer have to as of this moment.
An open letter from Icahn has just hit the wires. On behalf of his peers, he writes:
“Dear Fellow Apple Shareholders,
While we are disappointed that last night ISS recommended against our proposal, we do not altogether disagree with their assessment and recommendation in light of recent actions taken by the company to aggressively repurchase shares in the market.”
“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.”
Icahn was also eager to stress that he was excited about Apple’s future, as the company has confirmed plans “to launch new products in new categories this year (in addition to an exciting product roadmap with respect to new products in existing categories).”
In short, Icahn has thrown the towel trusting Apple to add more zeroes to his investment with the release of its next revolutionary product, which many believe is the iWatch.