"This is a no-brainer to go buy stock in a company that can go borrow" at a low rate, Icahn said in an interview. "Buy the company here and even without earnings growth, we think it ought to be worth USD 625," he said, referring to the stock price, which closed the day of the interview at USD 489.57, having risen 5 percent on the news of Icahn's investment.
Icahn also used used Twitter to publicize his move, saying he had a "nice" conversation with Apple CEO Tim Cook and discussed his opinion that "a larger share buyback should be done now". He added that he plans to speak with Cook again "shortly".
The tweets didn't disclose the size of the stake but a person familiar with the position said Icahn's stake is worth more than USD 1.5 billion. At that capitalization, Icahn's stake would be less than 1 percent.
Steve Dowling, an Apple spokesman, said the company appreciates the interest and investment of all its shareholders. "Tim had a very positive conversation with Mr. Icahn today," he said, without elaborating. In July, Apple said it had already spent USD 16 billion to repurchase shares in its third quarter ended in June.
