Hedge fund manager Einhorn takes Apple campaign to shareholders

Hedge fund manager Einhorn takes Apple campaign to shareholders
Advertisement
Hedge fund manager David Einhorn, who is battling Apple Inc in court as part of a wider effort to get the iPhone-maker to share more of its cash pile, will now make a direct appeal to the company's shareholders.

He will host a conference call on Thursday to argue the merits of distributing perpetual preferred stock his favored way of rewarding shareholders.

Einhorn's $8 billion Greenlight Capital is seeking an injunction to block a February 27 shareholders' vote on "Proposal 2" in Apple's proxy statement, which would abolish a system for issuing preferred stock at its discretion.

Apple declined to comment on Einhorn's plan to appeal directly to shareholders. Chief Executive Tim Cook last week dismissed the lawsuit as a "silly sideshow".

But Cook said the idea of issuing preferred stock was creative and one that Apple's board was carefully considering, while it ponders other ways to share its $137 billion in cash and securities something Wall Street investors have been seeking for years.

But even as the hedge fund star tries to rally Apple shareholders to his cause, the Nathan Cummings Foundation, which says it has been a limited partner of Greenlight's through its endowment, said it was "dismayed" that Einhorn was suing Apple to prevent a vote on Proposal 2.

"We very much oppose your decision to enjoin the 2013 annual meeting and the vote on Resolution #2," Simon Greer, president and CEO of the foundation, said in a letter to Einhorn that was obtained by Reuters.

In response, Greenlight said in a statement "This is a former investor who redeemed. We wish them well."

Greer however said later in an emailed statement that the foundation remained an investor with Greenlight through a "pooled fund", without elaborating.

© Thomson Reuters 2013

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Apple, David Einhorn, Tim Cook
Google Drive gets file previews on the desktop; Android app adds video streaming
Microsoft cooler than before, Apple cool as ever, Android coolest: Poll
Facebook Gadgets360 Twitter Share Tweet Snapchat LinkedIn Reddit Comment google-newsGoogle News

Advertisement

Follow Us
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »