/// Einhorn Wants More Cash From Apple
Hedge fund magnate and famous Apple bull David Einhorn is taking the company in which he holds some 1.3 million shares to the mat over its capital allocation strategy. On Thursday Einhorn’s Greenlight Capital sued Apple over a proxy proposal that would eliminate preferred stock from its charter. In a release, Greenlight urged Apple shareholders to vote against the proposal would it argues would prevent the company’s board from unlocking shareholder value. “Apple is a phenomenal company filled with talented people creating iconic products that consumers around the world love,” Einhorn said. “But Apple has a problem, we think. It has a cash problem.” With the shares down about 35 percent from a 52-week high of $705 a share, and more than $137 billion in combined cash plus short- and long-term investments, Einhorn argues that shareholders could be getting as much as $32 a share under his preferred stock scheme, though he has as yet declined to explain the math behind that number. Apple shares rose by $2.36 to $457.06 by 8:35 AM Pacific Time.
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Einhorn Wants More Cash From Apple