Hedge fund manager Einhorn takes Apple campaign to shareholders via conference call

“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,” Edwina Gibbs and Stephen Coates report for Reuters. “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,” Gibbs and Coates report. “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.'”

Read more in the full article here.


  1. This proxy fight boils down to is whether or not should Apple be able to issue Preferred Stock without shareholder approval. Einhorn wants to issue Preferred Stock WITHOUT shareholder approval. Who has the best interest of shareholders in mind?

  2. Yeah, if ever Apple is to issue Preferred stocks, Apple should issue
    the stocks to investors holding the stocks for 2 years at least, this would eliminate most hedge funds, mutual funds, traders, and short
    term investors.

  3. Like him or not (I don’t, but agree with him on this issue), Apple is playing fast and loose with corporate governance by gaming the proxy vote, apparently with Calpers on their side, which is a weird-enough turn around to be suspicious. As a shareholder, I don’t like to be manipulated into being forced to vote on a complex group of 4 issues that rightfully should be separated. And for those of you who actually understand the issue at stake, I am dubious that taking away the BOD’s right to issue preferred stock is either necessary or wise. Therefore, i have to believe there is something important concerning the issue that Apple is not telling shareholders, and I don’t like that. If, for example, the BOD is deeply divided on the issue of preferred shares and this initiative is seen as a not-so-clever way to take the matter out of their hands, then let us know.

  4. If he’s unhappy investing in Apple, perhaps Apple is not who he should invest with. I distrust hedge funds intensely when it comes to corporate governance. Their focus is too narrow. I hope he fails at this.

  5. How can Mr. Einhorn’s proposal not be self-serving? He after all is looking after his fund’s interests. Should that screw the small investor or Apple means little to him.

    In my view, Einhorn sees a mountain of cash on a table, and wants to help himself to it, regardless of whether there are far better uses for the capital.

    Unlocking value my ass. I don’t trust any hedge fund. This us Gordon Gecko-esque greed, plain and simple.

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