Icahn Karl (Carl Icahn)

Icahn Karl (Carl Icahn)

Karl Icahn calls himself the activist investor and the defender of shareholders. He is known that he takes shares of the large IT companies, and then actively lines their heads to capital repayment to investors and carrying out restructuring for the purpose of increase in shareholder value of business. In particular, Icahn bought shares in Apple, eBay, Netflix and HP. The last not without the assistance of the American businessman was separated into two companies in November, 2015.

Biography

2015: Purchase of 7% in Xerox

According to the The Wall Street Journal newspaper with reference to the documents sent by Karl Icahn to the American finance regulator on November 23, 2015 the entrepreneur purchased a 7.13 percent share in Xerox and became the second in value shareholder of the company.

2016: Sale of all stocks of Apple

At the end of April, 2016 Karl Icahn announced sale of all the stocks of Apple because of concerns concerning business development of the company in the Chinese market. Against the background of this statement of quotation of the American producer of electronics fell.

We have no positions any more in Apple — Icahn said in an interview to CNBC TV channel. — Tim Cook did great job. This morning I called it, it was obviously a little baffled. But I told it that his company great.

One of the largest shareholders of Apple Karl Icahn sold all shares of the company because of China

According to the billionaire, by the end of April, 2016 Apple differs from that that there was half a year or a year ago. The company has strong team of top managers therefore it does not need the help of activists investors, he told.

Speaking about the reasons which induced Karl Icahn to sell all shares of Apple he called concern in provision of the company in the Chinese market. Disturbs the investor that the authorities of the country can limit business of Apple that will affect sales to corporation in Celestial Empire. At the same time the businessman was recognized that he is not frightened by slowdown in economic growth of China.

In April, 2016 in China iBooks Store and iTunes Movies Apple services were blocked that turned out to be consequence of toughening of rules of the online publication of books and other materials, especially concerning the foreign companies. Conditions of removal of blocking from iBooks Store and iTunes Movies were not called.

Karl Icahn began to acquire shares of Apple in 2013. To the exit moment from capital stock the billionaire had 45.8 million securities that made him by one of the largest individual shareholders of the company. However, there was not enough this share for participation in management of Apple and obtaining the right of a voice. According to assessment of Bloomberg, the share block of Apple belonging to Icahn could cost about $4.4 billion. The businessman reported that stocks of Apple brought him about $2 billion income.

If you purchased actions, then could get return 48-50% of total profit. Certainly, we earned a lot of money, but at the same time it is no wonder that we got rid of a part of actions in February, 2016 — Icahn noted.

After his statement for sale of shares of quotation of Apple decreased more than by 3% to closing of the Nasdaq exchange on April 28, 2016. In a week securities of the company fell in price approximately by 10% what the publication of the financial statement in which it was announced the drop in sales of iPhone first in the history and also reduction of revenue of Apple, the first for 13 years, affected.^[1]

2018

Purchase less than 5% of stocks of VMware

In April, 2018 Karl Icahn purchased a share in VMware that can indicate the forthcoming restructuring in the company.

How many actions were purchased by Icahn, is not specified. According to CNBC TV channel, investors should open data in case of the redemption of more 5 percent share. 80% of securities of VMware, belong to Dell who became the majority shareholder after merger of EMC for $67 billion.

Karl Icahn

Karl Icahn is the activist investor famous for what takes shares of the large IT companies, and then actively lines their heads to carrying out restructuring for the purpose of increase in shareholder value.  So, the businessman bought securities of HP and Xerox, and after a while these companies were separated.

Began to speak about possible restructuring of VMware in 2018. In February reported to Dell that considers different options of further business development, including consolidation with VMware, placement of ordinary shares or further work in the current format. At the same time in Dell specified that the speech about sale to the company or shares in VMware to the third parties does not go.

According to CNBC, the Dell corporation is going to go public without accomplishment of typical formalities. The accelerated program is that VMware will formally absorb Dell, having allowed the last to make listing quickly. By April, 2018 negotiations on this question continue, notes TV channel with reference to the sources.

At such transaction the founder and the CEO of Dell Michael Dell and also private investment fund Silver Lake (the major shareholder of Dell), will receive shares of VMware which then can be sold in the public market.

Karl Icahn was one of applicants for privatization of Dell in 2013. At that time the entrepreneur possessed 8.9% of stocks of the company. However shares of Dell for $24.4 billion were redeemed Michael Dell and Silver Lake, and Icahn called this price strongly underestimated.^[2]

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