In a preliminary proxy filing submitted to the Securities and Exchange Commission, Apple (NASDAQ:AAPL) has officially come out against billionaire investor Carl Icahn’s proposal to expand the company’s share buyback program, reports CultofMac. Icahn has long been pushing the California-based company to return additional cash to shareholders and previously told CNBC that he would consider a proxy fight if Apple doesn’t act on his proposal.
In an open letter written to CEO Tim Cook earlier this year, Icahn had proposed that Apple repurchase $150 billion worth of its stock. However, the preliminary proxy filing revealed that the activist investor has lowered the proposed amount to $50 billion. As noted in the filing, Icahn’s proposal will be submitted on his behalf by High River Limited Partnership.
Proposal No. 10 requests “that Apple commit to completing not less than $50 billion of share repurchases during Apple’s fiscal year ending September 27, 2014 (and increase the amount authorized for share repurchases under its Capital Return Program accordingly).”
However, Apple recommended that the company’s shareholders vote against the proposal. “While the Board and management oppose this shareholder proposal, they are fully committed to returning cash to shareholders,” stated Apple. “The Board and management team believe that capital should be returned to shareholders on an efficient and sustained basis, and that the evaluation of capital return should be performed regularly and carefully with the best long-term interest of the business and shareholders in mind.”