BUSINESS
10/09/2014 09:16 am ET Updated Nov 05, 2014

Carl Icahn Asks Apple To Give Shareholders More Money

Billionaire activist shareholder Carl Icahn wants Apple to give away some of its mountain of cash to shareholders.

In a letter to Apple CEO Tim Cook, Icahn said Apple's stock price was still way too cheap at roughly $100 a share. He thinks it's really worth more than $200. And he thinks Apple could goose its stock price higher by hurrying up a plan to dip into a $133 billion cash stockpile to buy stock from shareholders.

"We believe Apple is dramatically undervalued in today’s market, and the more shares [are] repurchased now, the more each remaining shareholder will benefit from that earnings growth," Icahn wrote.

Icahn, who typically agitates for wrenching changes at companies such as eBay and Family Dollar -- inspiring Silicon Valley rainmaker Marc Andreessen recently to dub him "Evil Captain Kirk" -- has taken a gentler approach with Apple.

He announced a big stake in Apple a year ago, declaring it cheap and calling for stock buybacks. Apple at least partly responded, stepping up an existing buyback program and splitting the stock, which has gained more than 50 percent since Icahn's first announcement.

Apple shares haven't reacted much to Icahn's latest letter, rising less than 1 percent in pre-market trading on Thursday morning. But the stock price rose 2 percent on Wednesday, the day Icahn tweeted a promise that a new letter was on the way.

This is a breaking news story. Please check back for further updates.

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