October 1, 2013 / 3:41 PM / 4 years ago

Apple shares get boost on Icahn dinner with CEO Cook

Apple's new iPhone 5C is displayed at an Apple shop in Tokyo's Ginza shopping district, September 20, 2013.Yuya Shino

NEW YORK (Reuters) - Shares of Apple Inc. rose about 2 percent on Tuesday on news that billionaire activist investor Carl Icahn had dinner with Apple chief executive Tim Cook on Monday and "pushed hard" for a buyback.

"Had a cordial dinner with Tim last night. We pushed hard for a 150 billion buyback. We decided to continue dialogue in about three weeks," Icahn tweeted on Tuesday.

In August, Icahn told Reuters that "Apple has the ability to do a $150 billion buyback now by borrowing funds at 3 percent.

He also said at the time, "If Apple does this now and earnings increase at only 10 percent, the stock - even keeping the same multiple currently - should trade at $700 a share."

Tuesday, shares of Apple rose 1.85 percent to trade over $485 a share.

A source familiar with the matter, who declined to be named because Icahn hasn't disclosed his holdings in Apple, said the investor's stake was worth around $1 billion, a fraction of the company's market value of more than $400 billion.

Cook did not mention the dinner in any tweets on Tuesday.

Reporting By Jennifer Ablan; Editing by Meredith Mazzilli

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