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Don’t save Apple’s share price with buy-outs

by on10 February 2014

Icahn can’t make it work

Fruity cargo cult Apple has been responding to its tanking share prices following the idea of Carl Icahn – namely buy them up while they are cheap and keeping them in short supply.

Icahn wants the company to do even more as a way of keeping the share price high, but it looks like the proxy advisory firm ISS thinks the whole idea is stupid. ISS has been telling everyone that they should vote against activist investor Carl Icahn's share buyback proposal for.

"The Apple board has returned the bulk of its US-generated cash to shareholders via aggressive stock buybacks and dividends payouts," the ISS report said. "In light of these good-faith efforts and its past stewardship, the board's latitude should not be constricted by a shareholder resolution that would micromanage the company's capital allocation process."

Proxy advisory firm Egan-Jones also advised shareholders on Friday to vote against Icahn's plan. However while the moneymen are voting against Icahn’s plan, they are ignoring the fact that Apple has been carrying out more buyouts anyway. 

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