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Subject:  Re: Let the Game Begin! Date:  7/10/2013  1:03 PM
Author:  TheBullet Number:  17643 of 26156

How crazy would it be for the target to be AAPL?

The target is a large-cap
... check.

investment-grade U.S. corporation that principally operates in one business
... check.

The business is simple, predictable, and free-cash-flow-generative, and enjoys high barriers to entry, high customer switching costs and substantial pricing power

... check, check, check, etc. Except switching costs, to some degree.

Is he going all in?

The activist fund will be capped at $1 billion and will invest alongside the New York-based firm’s main hedge funds, which plan to invest about 15 percent of their capital in the same stock. Pershing Square manages about $12 billion, meaning the total investment could approach $3 billion. The firm, which already has a position in the stock, plans to buy more than 5 percent of the company and will talk to the board and management to bring about change.
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