Carl Icahn Explains Why Apple Is 'Very Undervalued' And EBay Should Spin-Off PayPal

Carl icahnREUTERS/ Chip EastHedge fund titan Carl Icahn

Billionaire activist investor Carl Icahn has taken a stake in eBay, nominated two directors to its board and is angling for PayPal to be spun out as a separate unit.

Why?

In an interview with Bloomberg Television’s Trish Regan and Adam Johnson, Ichan explains:

“We’ve done a lot of work on eBay and we believe without question it’s a no-brainer that PayPal should be spun off,” he says, adding that eBay “hasn’t done as well as it should have … there’s no reason they should be together at this point.”

He also talks about his interest in Apple, saying that “Tim Cook is doing a great job there,” but he thinks Apple is “very undervalued” and the board should be buying back the stock to help the small investor.

Icahn currently owns $US3 billion worth of Apple including $500 million more he bought on Wednesday.

He’s been pushing Apple to commit to a $US50 billion buyback.

He explains:

“I’m almost talking against myself when I talk about Apple because it’s almost ludicrous to me that they don’t use a lot of their money to keep buying that stock. And they’re letting guys like me buy it.”

Here’s the full interview:

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