(UPDATED) Stringer doesn’t bite at investor’s Apple buyback plan
UPDATE: The investor behind the buyback plan announced late Monday morning that he was withdrawing the proposal. Comptroller Scott Stringer released a statement calling the news “ a tremendous victory for Apple’s shareowners.”
“As the New York City pension funds detailed in our letter to Apple shareowners, the proposal was too risky, short-sighted and it landed with a thud,” Stringer wrote. “Apple’s board of directors can now focus on maximizing value for long term shareowners.”
Metro’s original story is below.
While an aggressive investor asks tech giant Apple to buy back $50 billion in stock, New York City’s comptroller pushed back on behalf of pension holders across the boroughs.
The city has about $1.3 billion invested through some 2.5 million Apple shares between the five pension funds. In a letter to fellow shareholders on Monday morning, Scott Stringer described investor Carl Icahn’s buyback proposal as short-term and fleeting.
“We’re in it for the long haul. I’m in favor of returning excess cash to shareowners, but this plan is simply too large, too risky and too short-sighted,” Stringer wrote in the letter.
The comptroller suggested that investors defer to Apple’s board, which he said has a “strong record of creating value for shareowners.”
Stringer isn’t alone in opposing the massive buyback plan backed by Ihcan, who has revealed he owns an estimated $4 billion in the trendy tech company.
Late last year, the head of California Public Employees’ Retirement System — which matches New York’s $1.3 billion investment — also blasted the buyback proposal.
New York City’s five pension funds manage about $147 billion in total.
Follow Chester Jesus Soria on Twitter @chestersoria