The showdown at Apple's One Infinite Loop has ended in a draw.
After six months of trying to force the company to spend $US50 billion ($A56.04 billion) on buying back its own stock, investor Carl Icahn is dropping his campaign, apparently satisfied that the company's recent decision to repurchase $US14 billion worth of its shares was good enough for now.
In a letter to Apple shareholders published on Monday, Icahn said his decision to stand down was prompted by the Cupertino company's recent buyback as well as a recommendation against his effort from an influential firm that gives advice to big shareholders.
A day earlier, Institutional Shareholder Services had said the Icahn proposal would "micro manage" Apple's capital allocation process, and recommended shareholders reject Icahn's plan to shake loose more of Apple's cash.
"We see no reason to persist with our non binding proposal, especially when the company is already so close to fulfilling our requested repurchase target," Icahn wrote.
The move, at least for now, ends a very public scrimmage between Icahn and Apple's board over how the company plans to use its massive war chest of $US160 billion in cash.
Apple investors responded by nudging shares up 1.8 per cent on Monday.
An Apple representative declined to comment.
Icahn, who owns roughly $US4 billion in Apple shares, has seen his investment pop nearly 14 per cent since he launched his campaign last August. Some observers felt Icahn was overreaching in trying to force Apple's hand.
"As I've said all along, everyone thought Carl was off his rocker for asking such a ridiculous number," said analyst Laurence Balter with Oracle Investment Research, referring to Icahn's $US50 billion buyback target.
"At the same time, in a very legal and logical way, he has used social and traditional media to get what he wants. Carl has done what he's been doing the past 40 years, which is shaking up boards and management and getting them to start thinking about their shareholders.
"I think he wanted to see how far he could take this thing and now it's over."
The move ends a campaign by Icahn that began August 13, when he tweeted about the huge chunk of Apple stock he had bought, pushing the share price up five per cent by the end of the day. Although the company had said a year earlier that it intended to spend $US100 billion on dividends and stock buybacks, Icahn said the company was still undervalued, asking Apple at one point for a $US150 billion share buyback.
After publicly pushing CEO Tim Cook for months with tweets and letters, Icahn is now apparently suggesting the company is on the right track, writing in his note that because of "Cook's confirmed plan to launch new products in new categories this year (in addition to an exciting product road map with respect to new products in existing categories), we are extremely excited about Apple's future."
