Carl Icahn makes substantial investment in 'undervalued' Apple

Carl Icahn makes substantial investment in 'undervalued' Apple

Summary: As if the American business magnate didn't have enough on his plate besides Dell right now.


American business magnate Carl Icahn is taking a portion of his vast wealth and bringing it over to a company that he describes as "undervalued."

Without reading the headline, would you have guessed Apple? If so, then you are correct.

Icahn himself confirmed the news via Twitter on Tuesday. Here are two of his latest Tweets on the matter:

As news broke just before the bell this afternoon about the rather surprise investment, Apple shares were up by approximately four percent to roughly $486.45 a pop.

However, the exact amount of Icahn's investment or his new share in Apple has yet to be revealed.

Given the lack of actual new products out on the market right now, it's turning out to be a busy week for the Cupertino, Calif.-based corporation.

Rumors swirl all the time about the iOS portfolio, but there has been more buzz around a possible new iPhone reveal on September 10 followed by a new set of iPads just in time for the holiday season.

Icahn is a bit busy at the moment as well given his involvement in Dell's current self-identity crisis.

Most recently, the financier upped the ante as well as his stake in the company by picking up four million more Dell shares.

Icahn paid $12.94 per share, bringing his grand total number of Dell shares to 156,478,650.

The Wall Street Journal highlighted that he now owns 8.9 percent of the Texas-based company, making him the second largest shareholder behind founder and CEO Michael Dell.

Icahn and the PC maker's leader have been at odds for months now with Michael Dell and Silver Lake Partners on one side of the fence trying to take the company private.

On the flip side is Icahn along with Southeastern Asset Management, which together have been doing everything possible to block that plan.

Topics: Tech Industry, Apple, iOS, iPhone, PCs

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  • Crickets ...

    Rabid Howler Monkey
  • What's amazing is how AAPL shot up roughly 5% after this announcement.

    Fundamentals of APPL didn't change...just one guy tweeting he had a substantial investment.
    • That's the game

      Buy, talk it past it's value, sell, walk away.

      At that pont why care about everyone else who invested?
      William Farrel
      • It's called, stock manipulation, and Icahn should be brought up on charges,

        if he doesn't keep any stock from Apple for the long-term. If he sells whatever he buys of Apple shortly after the stock jumps higher, then he and Tim Cook should be investigated.

        Apple is not undervalued, and in fact, it's way overvalued. It's doesn't have the magic anymore, and it doesn't have the products lineup to deserve a high market cap.
  • Oh boy

    The Dell thing gives me the impression he is a very squeaky wheel. Not sure what company wants that in a high profile shareholder?
  • Carl Icahn makes substantial investment in 'undervalued' Apple

    I don't see Apple as being undervalued. Look at their stock price vs. what they actually have for products. Their line up is very limited and people are losing interest. I imagine the chat Icahn had with Cook was probably Cook selling him on the stocks to boost them higher. Classic pump and dump stuff going on.
    • What does he know?

      Probably so. Icahn is pretty much a rube when it comes to valuing companies. Plus he'd be easy to fool. A good sales pitch from Tim Cook would have him writing checks in no time at all. If Icahn knew half as much as you do about acquiring companies, he'd stay away.
      Robert Hahn
  • Merger?

    Maybe if Icahn gets the control of both apple and Dell, he'll merge them. To be called ApplleD. :-)