Icahn’s bid for an Apple stock buyback worth $50 billion ran aground today (Monday) when an influential proxy voting service, Institutional Shareholder Services Inc. (ISS), sided with Apple.
Icahn’s nonbinding advisory resolution for the huge Apple stock buyback was one of 11 proposals to be voted on at the Feb. 28 annual shareholders meeting.
Apple had already recommended that shareholders vote against it, but the ISS report was a big hint that Icahn wasn’t going to get a lot of support elsewhere, either.
“While the board has failed to articulate a strategy for addressing its long-term capital needs, it has returned the bulk of its U.S.-generated cash to shareholders,” ISS, a subsidiary of MSCI Inc. (NYSE: MSCI), said in its report.
“The board’s latitude should not be constricted by a shareholder resolution that would micromanage the company’s capital allocation.”
ISS added that it would prefer to see Apple focus more on products than what it should or should not do with its cash reserves, which remain bloated at about $145 billion.
That, along with ongoing resistance from some other major Apple shareholders like Egan-Jones, another proxy advisory firm, was enough to get the usually stubborn Icahn to cry uncle.
On Monday the activist investor tried to put the best spin on his retreat, noting in a letter to Apple shareholders that the company already had repurchased $40 billion of its own stock in the past year, and $14 billion worth just since Apple reported earnings on Jan. 28.(...)Click here to continue reading the original ETFDailyNews.com article: Apple Inc. (AAPL) Buyback Battle; A Rare Loss For Carl IcahnYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)