CNBC is reporting that Carl Icahn had a ‘good conversation’ with Apple CEO Tim Cook and noted that both believe the company’s stock is undervalued.
Apple’s Cook told Icahn that he’s still studying Icahn’s proposal to buy back $150 billion worth of the company’s stock. Icahn met with Cook in late September to discuss such a buyback. However, at the time Cook did not seem interested in a buyback of that size, Icahn told CNBC.
Icahn met Cook for a ‘cordial’ dinner at the end of September to push his buyback proposal; however, it appeared Apple would be sticking to its $60 billion plan. He then posted an open letter to Apple CEO Tim Cook again urging him to increase Apple’s stock buyback to $150 billion.
Icahn has told CNBC that he has no intention of giving up on a large buyback and may consider a proxy battle to return more value to shareholders.
“If they don’t do it, we’ll test the waters and see if the shareholders want us to do it and if we could win,” Icahn told CNBC. “We’ve said we’re not going away. I’ve said that to (CEO) Tim (Cook) and I’ll say it again.”