Icahn Says He No Longer Has Apple Stake, Citing China Concerns

By Josh Beckerman 

Billionaire Carl Icahn no longer has a stake in Apple Inc., he said in an interview with CNBC on Thursday, citing concerns about the company's relationship with China.

Mr. Icahn said Apple is a great company but no longer a "no-brainer" as an investment choice. The activist investor said he was worried "about China's attitude" toward Apple, and said the nation "could be a shadow" for the company.

Apple shares recently traded down 3.3% to $94.60.

During the fourth quarter, Mr. Icahn reduced his Apple stake, selling shares valued at more than $700 million. At year-end, he owned a nearly $5 billion stake, according to a February filing.

In an Aug. 13, 2013, tweet, Mr. Icahn disclosed "a large position" in Apple and called the company undervalued. The Wall Street Journal reported at the time that the stake was valued over $1.5 billion. He subsequently bought more shares and called for the company to boost its stock buybacks.

Mr. Icahn said Thursday that he had a "huge profit" on the Apple investment. Asked if CNBC's per-share calculations and estimate of a $2 billion profit were accurate, he said the figure was "correct, within a few bucks."

On Tuesday, Apple posted its first quarterly decline in revenue in 13 years. Apple's revenue and profit for the fiscal second quarter ended March 26 both missed analysts' expectations. The company also projected that revenue in the current quarter would fall far short of expectations.

Revenue from Greater China, which includes Hong Kong and Taiwan, fell 26% to $12.49 billion.

Apple Chief Executive Tim Cook said on an investor call Tuesday that the mainland Chinese market was stronger than people thought. The majority of the weakness came from Hong Kong because of its currency appreciation, he said.

In the interview Thursday, Mr. Icahn praised Mr. Cook and said the company has a "tremendous future.

"I hope one day to get back into it," he said.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

April 28, 2016 15:49 ET (19:49 GMT)

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