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Apple Slams CEO Health Scare; Stock Rebounds

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Bloomberg News

Published: October 4, 2008

Apple rebounded in Nasdaq trading after the computer maker said an unconfirmed report Friday morning that Chief Executive Officer Steve Jobs had a heart attack and was hospitalized is false.

The report is "not true," spokesman Steve Dowling said in an interview. The shares fell as much as 5.4 percent after a post on CNN's iReport.com citizen journalist Web site cited an anonymous source saying Jobs was rushed to the hospital after suffering a "major heart attack." The report has been removed.

Concern about Jobs's health weighed on the stock this year, contributing to a 49 percent drop. Jobs, who had surgery four years ago to treat pancreatic cancer, appeared visibly thinner at a company event in June, raising speculation he was ill.

Jobs, 53, told members of Apple's board in July he is cancer-free and dealing with nutritional problems after his cancer surgery, which can lead to weight loss, The New York Times reported, citing people close to Jobs.

After saying that Jobs was suffering from a "common bug" in June, Apple has declined to comment further on his health, calling it a "private matter."

"It's a tough position to be in: They don't continually want to field questions and make news when there is no news," said Ryan Jacob, who manages the Jacob Internet Fund and has owned Apple's shares since 2003. "We, as investors, have to hope that if there is something material to say, they will comment quickly."

John Heine, a spokesman for the Securities and Exchange Commission, declined to comment when asked whether the agency will look into Friday's erroneous report.

Time Warner's CNN describes iReport.com as a place for "unedited, unfiltered, news" and said it "makes no guarantee about the content or coverage" on the site.

CNN spokeswoman Carolyn Disbrow didn't immediately return phone calls seeking comment.

Apple, based in Cupertino, Calif., rose $3.82 to $103.92 at 11:32 a.m. New York time on the Nasdaq Stock Market after earlier falling to $94.65. It closed down at $97.07.

Apple hasn't announced a succession plan should anything happen to Jobs, who is considered irreplaceable by investors and analysts because of his ability to set technology trends and deliver cool products coveted by consumers. If Jobs were to leave for any reason, the stock likely would plummet about 25 percent, said Gene Munster of Piper Jaffray & Co. in Minneapolis. That would erase $23 billion from Apple's market value.

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