Greenlight Capital’s David Einhorn is a very influential Wall Street investor who is going after Apple for proposing to allegedly eliminate preferred stock options from AAPL shareholders. Apple recently started issuing small dividends to investors, and preferred stock would entitle investors to fixed dividends instead of the fluctuating common-stock dividends.
Einhorn and Greenlight Capital will hold a conference call today with interested Apple investors to discuss their ideas on how Apple should use its massive cash pile.
“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,” according to Reuters. Apple CEO Tim Cook has dismissed Einhorn’s lawsuit against the company as a “silly slideshow.” Cook didn’t totally discredit Einhorn’s proposition, however. “It’s a privilege to be in this position, where we can seriously consider returning additional cash to shareholders,” said Cook in a recent interview. “The board is in very active discussions, and we will be deliberate and thoughtful. That’s what our shareholders want.”
After Greenlight filed its lawsuit, Apple issued an official statement saying it is considering returning more money to investors. How that will happen remains to be seen. Einhorn recently explained his side of the argument in an interview with AllThingsD.
Here’s how to join the conference call today:
The conference call and webcast will take place on February 21, 2013 at 2:00 p.m. Eastern. The conference call may be accessed by dialing 1-800-901-5241 (U.S. callers) or 1-617-786-2963 (International callers) and entering the passcode 62063868#. Those who intend to participate in the call should dial in at least 20 minutes in advance. A replay of the call will be available through March 6, 2013 by dialing 1-888-286-8010 (U.S. callers) or 1-617-801-6888 (International callers) and entering the passcode 45128663#. The webcast can be accessed by visiting www.media-server.com/m/p/aj2p6kq7.
- Source Reuters