Breaking News from CNBC's David Faber: Icahn Shareholder Proposal Calls for Apple to Buy Back $50B in Stock - Source
WHEN: Today, Wednesday, December 4th
WHERE: CNBC's "Closing Bell"
Following is the unofficial transcript of breaking news from CNBC's David Faber. All references must be sourced to CNBC.
DAVID FABER: WE CAN CONFIRM OF COURSE THAT CARL ICAHN WILL SUBMIT A SHAREHOLDER PROPOSAL TO SHAREHOLDERS OF APPLE AT THE COMPANY'S ANNUAL MEETING. HE'LL HAVE TO ACTUALLY DO IT ON HIS OWN BY SENDING HIS OWN PROXY. HE MISSED THEIR PROXY. BUT MORE IMPORTANTLY, WE CAN ALSO TELL YOU THAT HIS NEW ASK IS SIGNIFICANTLY DOWN FROM HIS PREVIOUS ASK. THAT BEING HE IS NOW SUBMITTING A SHAREHOLDER PROPOSAL THAT WOULD SAY BUY BACK $50 BILLION WORTH OF STOCK IN THE CURRENT FISCAL YEAR. 50 BILLION IF YOU RECALL OF COURSE, HIS SUGGESTION PREVIOUSLY HAD BEEN FOR AN IMMEDIATE $150 BILLION BUY BACK BY APPLE. HE IS NOW ASKING FOR 50 BILLION IN THE CURRENT FISCAL YEAR – BY THE WAY THAT FISCAL YEAR WILL END WITH SEPTEMBER OF 2014. SO INTERESTINGLY, ICAHN IF HE CHOOSES TO MOVE AHEAD WITH THIS SHAREHOLDER PROPOSAL – AND NOTHING SAYS THAT HE HAS TO OF COURSE IT IS NOT BINDING – WILL BE ASKING FOR 100 BILLION LESS IN BUY BACKS FROM THE COMPANY. PERHAPS A MORE MODEST, THOUGH MORE REALISTIC, SUM. FOR ITS PART THOUGH, APPLE HAS ALREADY COMMITTED TO, IF YOU RECALL LAST SPRING, A $100 BILLION CAPITAL RETURN PROGRAM – 40 BILLION OF THAT THROUGH THE DIVIDEND – THEY HAVE ALREADY BOUGHT BACK $23 BILLION WORTH OF STOCK, HAVE ANOTHER 37 BILLION TO GO ON THAT AND HAVE SAID THEY WILL REVISIT THEIR CAPITAL RETURN PLANS EARLY NEXT YEAR. SO, THE NEWS OF COURSE, ICAHN SHAREHOLDER PROPOSAL DOWN FROM 150 BILLION TO NOW 50 BILLION. BY THE WAY, THEY'LL HAVE TO SPEND SOME DECENT MONEY, BILL, TO ACTUALLY SEND ALL OF THOSE PROXIES OUT. WE WILL SEE IF HE FOLLOWS THROUGH.
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