What does Apple plan to do with those 58.000 million dollars
Some more buying ahead?.

2-08-2.000

 

Apple's annual shareholder meeting has been scheduled for April the 21st, just one day after the second quarter's results are made public.

According to a report filed with the SEC, the matters on the agenda include voting on board members, renewing the auditors' contract, setting 2 further million shares apart for executive compensation... and, don't miss this, raising the number of Apple common stock shares from 320 million to 900 million. Apple wants to triple its shares.

Those new 580 million shares could be used to split the stock, as many (including most-respected MOSR) expect. But all the same...

All the same, it's queer to expect that. Apple's been months buying back its own shares in an attempt to raise the price of the remaining stock. The second effect of this was to raise the proportion of Apple shares controlled by the main shareholders by a very tiny marging.

But let's get to the point. The point that doesn't fit is that a share issue of these characteristics is usually done in order to pay for other company's shares. Mergers and acquisitions among internet and telecoms companies are more often than not done this way: Company A buys Company B by paying for B stock with purpose-issued shares in A. Little if any cash is involved, and ideally (if both companies are properly valued) the share price is unaffected or rises.

Now, 580 million shares are a lot of shares... and Apple's share hovers around 100 dollars. What (or whom) is Apple gunning for?

Now, this is only logical speculation. But if Apple turns out to announce a mammoth acquisition on the 21st of April, you read it here first :-).

 

 

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