“An activist investor wants Apple Inc. to distribute more of its ballooning cash hoard to shareholders,” Barbara Ortutay reports for The Associated Press.
“Greenlight Capital said Thursday that it is suing Apple in a New York federal court over the company’s proposal to eliminate preferred stock,” Ortutay reports. “David Einhorn, who heads Greenlight, said the proposal would prevent Apple’s board from unlocking shareholder value.”
Ortutay reports, “Apple, the world’s most valuable company, is drawing increasing criticism from investors who are pushing the company to do more with its enormous pile of cash – $137 billion and growing. Einhorn told CNBC on Thursday that Apple has a Depression-era mentality. He compared Apple to his grandmother ‘Roz,’ who grew up during the Great Depression. She was so careful about saving money, Einhorn said, that she never left messages on his answering machine out of concern that she’d be charged for the call. People who’ve experienced trauma, he said “sometimes feel like they can never have enough cash.””
Read more in the full article here.
Greenlight Capital urges Apple shareholders to vote ‘No’ on proposal 2 that would impede Apple’s ability to unlock shareholder value – February 7, 2013
Greenlight’s Einhorn sues Apple, ‘dissatisfied with capital allocation strategy’ – February 7, 2013
Greenlight’s Einhorn: Apple ‘the best big growth company’; Fed stimulus ‘counterproductive’ – July 10, 2012
David Einhorn says Apple isn’t a below-average company, it’s just priced like one – May 30, 2012