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Icahn urges Apple to repurchase more shares

[October 09, 2014]  (Reuters) - Billionaire activist investor Carl Icahn urged Apple Inc's board to start a tender offer to repurchase shares using a part of its $133 billion cash pile.

"We believe Apple is dramatically undervalued in today's market, and the more shares repurchased now, the more each remaining shareholder will benefit ...," Icahn said in a letter to Apple's board.

The investor, who owns about 53 million Apple shares, has in the past urged Apple to return more of its cash to shareholders and pressured the company to increase its stock buyback program and raise its dividend.

"To preemptively diffuse any cynical criticism that you may encounter with respect to our request ... we hereby commit not to tender any of our shares if the company consummates any form of a tender offer at any price," Icahn wrote.

Apple shares were up 1 percent at $101.78 in premarket trading on Thursday.

(Reporting by Supantha Mukherjee in Bangalore; Editing by Saumyadeb Chakrabarty)

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