Carl Icahn files proposal to put $150B Apple stock buyback program up for vote

By , Dec 4, 2013

Carl Icahn Time cover

Carl Icahn knows what he wants, and he usually gets it. These days, what Carl Icahn wants is Apple to initiate a $150 billion buyback program of its stock. Although Tim Cook hasn’t clearly expressed it, he’s been reluctant to follow Icahn’s request, which led him to file a precatory proposal.

A precatory proposal is a fancy term which, in clear English means a shareholder proposal for a stock buyback program to be voted on at Apple’s next annual shareholder meeting…

TIME has more details:

Icahn tells TIME he filed a shareholder proposal with Apple on Nov. 26, three days before the deadline for measures to be voted on at the company’s next annual shareholders meeting. His measure calls for a share buyback and is in the form of a precatory proposal, which means that even if a majority of Apple shareholders approved, it would not be binding on the company’s management. That’s the typical approach for shareholder resolutions, even those coming from investors who are at odds with management.

In short, a precatory proposal is here to convey hope rather than a legal obligation. Although technically non-binding, a precatory proposal, even if voted, wouldn’t oblige Apple to do anything.

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  • Karl Sullivan

    Why the $150B buy back in the first place?

    • http://www.iDownloadBlog.com Sebastien

      The less Apple stock on the market, the more the company is in control of its own destiny. Also, the less Apple stocks on the market, the more valuable the stock becomes.

      • Karl Sullivan

        Ahhhhh thank you.

  • DrQuack32

    This is typical Icahn. He gets the company to go into debt to buy the stock back and when they do and the price goes up, he sells, making sure he has his cash and the company is left in debt.

    • n0ahcruz3

      This^.

    • Your Mother

      …..that’s what rich people do.

    • chumawumba

      It’s called the 1%.

  • wc21

    Why is this stock manipulation considered legal? Apple should continue to operate in the interests of its long-term shareholders.

  • jacob wolin

    Carl Icahn is a terrible person he’s good at business but he doesn’t care about people. He is in the middle of buying out my mothers company right now

    • AndroidDogHeatandSteelersFan

      what company?

      • jacob wolin

        Forrest Laboratories they are a medical company and even though he does not have a direct hand in the buying and selling of the company the newly appointed CEO is under him. She my mom may lost her job due to her section being sold.

  • chumawumba

    This guy is a pain in the ass.

  • FrankensteinBlack

    And at the end of the day he will just be forgotten bones burred in the dirt for you see immortality is measured by how one contributes to humanity’s greater good. Bill Gates gets it.

    • Kurt

      -1
      Bill Gates wants to reduce the worlds population by use of vaccines. Those are his words.That’s the opposite of a humanitarian.

      • Hyr3m

        +1000

        I really wonder who is(/was) the greater evil between Gates and Jobs. Gates seems like a more functional asset who’s probably a bit higher up than Jobs ever was… also, Gates didn’t get sacrificed (yet).

        Jobs was more into destroying freedom in and through the tech industry whilst Gates reconverted to depopulation…

        Vaccines used to be a good thing up until they decided to use toxic/deadly adjuvants instead of the harmless ones…

      • Kurt

        Good question…one that I don’t have an answer to. Both were/are terrible people. Both were/are authoritarians bent on depopulating the earth. Why? Because we are scum to them.

      • Hyr3m

        How ironic that Jobs depopulated himself in the end… (or should I say formatted?)
        He may have been somewhat forced into playing along with evil schemes and refused certain things… I guess we’ll never really know… but I don’t know if he deserves the benefit of the doubt…