Carl Icahn, an activist investor, had earlier in the month made public a proposal which effectively asked Apple to buyback $50 billion Apple stock and give it back to shareholders. Apple has now filed a statement with SEC containing recommendation of Apple’s board to vote against Icahn’s proposal.
The statement says that Apple is already totally in commitment to give back cash to its investors. It also states that Apple had already increased the shares buyback authorization amount from $45 billion in 2012 to current $60 billion and has spent $23 billion on repurchasing stock. The statement also states Apple’s board intent that money should be returned to shareholders in a sustained and efficient way with utmost care.
The proposal of Icahn shall be put to vote on February 28th at the annual shareholders meeting of Apple. Icahn will likely try to give a good fight because he still has two months to win over shareholders to his side.