Einhorn Conference Call: As you may have heard, well-known hedge fund manager David Einhorn is currently battling with Apple Inc. (NASDAQ:AAPL) in the courtroom in hopes of forcing the company to share more of its cash with shareholders. While things are just beginning to heat up, it does not appear that Einhorn is backing off his stance.
According to Reuters, “he will host a conference call on Thursday to argue the merits of distributing perpetual preferred stock — his favored way of rewarding shareholders.”
The same article provides the backstory to those who are uninformed as to what is going on:
“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.”
At this point, Apple Inc. (NASDAQ:AAPL) has declined comment on his plan to discuss this directly with shareholders.
Although Einhorn strongly believes that he is making the right move, there are others who don’t exactly agree with him.
For one, Apple CEO Tim Cook has spoke of the lawsuit as a “silly sideshow.”
Of course, Cook followed this up by discussing the benefits of issuing preferred stock while also noting that it is something that the Cupertino-based company’s board has been considering.
The Reuters article also discusses another opponent to Einhorn’s decision:
“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.”
Einhorn is hosting the conference call with Apple Inc. (NASDAQ:AAPL) shareholders today. We will be sure to keep you updated as to the results as details become available.
Check back here for more updates on Einhorn Conference Call.
DISCLOSURE: I have no positions in any stock mentioned.
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