Greenlight's Einhorn says "chatted" with Apple's Cook

Fri Feb 8, 2013 1:35am IST

David Einhorn, President of Greenlight Capital, speaks at the 6th Annual New York Value Investing Congress in New York City, October 13, 2010. REUTERS/Mike Segar/Files

David Einhorn, President of Greenlight Capital, speaks at the 6th Annual New York Value Investing Congress in New York City, October 13, 2010.

Credit: Reuters/Mike Segar/Files

Related Topics

Stocks

   

REUTERS - Hedge fund manager David Einhorn of Greenlight Capital told Reuters on Thursday that he "chatted yesterday" with Apple (AAPL.O) CEO Tim Cook who is receptive to his proposals on Apple's capital allocation strategy.

Einhorn said he suggested to Apple an initial preferred share distribution, where dividends could be funded on an ongoing basis by a relatively small percentage of the company's operating cash flow.

"It is better than a big stock buyback because it doesn't deplete the company's cash right away, which the company seems to want to keep," Einhorn said earlier on Thursday.

Apple had $137.1 billion in cash, short-term and long-term marketable securities at the end of last year, but more than $94 billion in that cash is parked overseas.

Einhorn told Reuters that Apple Chief Financial Officer Peter Oppenheimer and his advisers rejected his idea in September 2012. He added the company then refused to withdraw a proposal - outlined in Apple's annual proxy statement - to eliminate preferred stock from its charter.

"We saw that the proxy came out and we saw they were planning to get rid of preferred - and then, we said, 'Wait a minute, we are not going to be able to bring this up again in a good way if we allow them to do this,'" Einhorn said. "So we should contest it now."

Greenlight sued to block the measure, asking a federal court in Manhattan to bar Apple from certifying votes cast in its favor.

Einhorn said: "When I discussed this with Tim Cook, and actually, the conversation has been going on for the last couple of weeks, he said that he wasn't familiar with my previous conversations with Peter Oppenheimer and whoever Peter Oppenheimer's advisers were. I was surprised by that."

Einhorn said Cook is receptive to his proposals and added that Cook's advisers "want to come and meet with me."

(Reporting By Jennifer Ablan; Editing by Chizu Nomiyama and Maureen Bavdek)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

TECH WRAP

Reuters Showcase

RK Laxman Dead

RK Laxman Dead

'Common Man' cartoonist RK Laxman dead at 93  Full Article 

Banking Revolution

Banking Revolution

India turns to corner shops, mobile phones for banking revolution.  Full Article 

Nuclear Group

Nuclear Group

China urges India to take steps to satisfy standards of NSG  Full Article 

U.S. Blizzard

U.S. Blizzard

Northeast U.S. braves 'crippling' blizzard, transit systems shut.  Full Article 

No Layoffs

No Layoffs

IBM dismisses Forbes report of massive layoffs.  Full Article 

Padma Bhushan

Padma Bhushan

India honours Bill Gates with civilian award  Full Article 

Fashionable Modi

Fashionable Modi

When Modi met Obama, his name was all over - his suit  Full Article 

Spielberg Speaks

Spielberg Speaks

Spielberg: 70 years after Holocaust Jews still face anti-Semitism.  Full Article 

Australian Open

Australian Open

Magic Makarova routs Halep to reach semi-finals.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage