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Greenlight's Einhorn to address Apple shareholders directly in conference call

post #1 of 20
Thread Starter 
David Einhorn, whose Greenlight Capital hedge fund is suing Apple in hopes of garnering preferred stock, will hold a conference call with the Cupertino, Calif., company's stockholders on Thursday to discuss an upcoming proxy vote.

Greenlight
Greenlight Capital's David Einhorn


One day after a federal judge sided in part with Greenlight's case, Einhorn announced on Wednesday that he will address Apple shareholders directly to argue his stance on the issuance of perpetual preferred stock, reports Reuters.

The hedge fund manager is suing Apple over the company's so-called "Prop 2" proposal that would revoke the ability of Apple's board members to issue preferred stock, instead putting that power into the hands of shareholders.

Dubbed "Greenlight Opportunistic Use of Preferreds" or "GO-UPs," the preferred stock would would pay out higher than normal dividends to mete out some of Apple's $137 billion cash hoard.

In the court case, Greenlight argues that Apple's "bundling" of three items, including the issuance of preferred stock, into Prop 2 goes against SEC rules. Apple countered last week, claiming that the SEC reviewed the proxy and found no problems with its contents. As for the GO-UPs, Apple said such shares only enhance Greenlight's financials and "do not serve the public interest."

Even if the lawsuit is successful in blocking a vote on the proposal, Apple is not obligated to issue the preferred stock, which could be Einhorn's impetus in courting shareholders tomorrow. If an injunction is not put in place, the decision to pass the proposal ultimately comes down to a shareholder vote scheduled for Feb. 27.
post #2 of 20
Einhorn, you are being a little too greedy. Apple likes to be conservative with regards to how they manage their money and handing out extra dividends may not be the best idea. Why can't you exhibit a little patience?

What are you trying to do, run Apple without being an employee?
post #3 of 20
Quote:
Originally Posted by drblank View Post


What are you trying to do, run Apple without being an employee?

 

That is sort of the idea. The likes of Einhorn have pulled it off in the past, but usually on distressed companies. If he succeeds against Apple, it would be historic.

post #4 of 20
I want to wipe that smug little grin off his face. This is one shareholder that thinks the power should reside with the shareholders. These Wall Street types feel entitled and they need a good clean kick to their reality.
post #5 of 20
Quote:
Originally Posted by jkichline View Post

I want to wipe that smug little grin off his face. This is one shareholder that thinks the power should reside with the shareholders. These Wall Street types feel entitled and they need a good clean kick to their reality.

 

I'm not siding with Greenlight but there's nothing wrong with thinking in general that the power should ultimately reside with the shareholders. Afterall shareholders are the owners of the company, not the management. Management is basically hired to manage the company for the shareholders. Now of course a lot of people here would think AAPL is actually Steve Job's company, but he's gone. Tim and other executives really can't claim they 'built the company'. 

post #6 of 20
Quote:
Originally Posted by jkichline View Post

I want to wipe that smug little grin off his face.

I agree, that grin is annoying. This sort of people are quite greedy, specially given how conservative Apple is with it's money (as someone already pointed out).

post #7 of 20
Oh great... With entry level already too high for mortals, this entitled jerk wants to dilute our shares with new 'hot shot' shares that only he and his friends can afford, with higher benefits to boot.
Screw you.
post #8 of 20

Greenlight's Einhorn to address Apple shareholders directly in conference call

Grassy knoll time.

There's nothing your wife/girlfriend/partner wouldn't like more than your 6 Plus...
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There's nothing your wife/girlfriend/partner wouldn't like more than your 6 Plus...
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post #9 of 20
Quote:
Originally Posted by jkichline View Post

I want to wipe that smug little grin off his face. This is one shareholder that thinks the power should reside with the shareholders. These Wall Street types feel entitled and they need a good clean kick to their reality.

You don't have to be an Einhorn fan to recognize that you know nothing. The shareholders own the company. If Einhorn or any other shareholder garners enough votes, he controls seats on the board, or even the whole board. The board hires and fires the CEO, declares dividends, and makes other very high level decisions.

As someone said, you could make the argument that it was Steve Jobs' company. But it wasn't. Years ago, he and Woz needed to raise money so they sold shares to the public. Those shareholders garnered control over the board, which inserted a CEO (Sculley) that kicked Jobs to the curb.
post #10 of 20
Quote:
Originally Posted by msuberly View Post

As someone said, you could make the argument that it was Steve Jobs' company. But it wasn't. Years ago, he and Woz needed to raise money so they sold shares to the public. Those shareholders garnered control over the board, which inserted a CEO (Sculley) that kicked Jobs to the curb.

Yes that kicked Jobs out and started Apple's downturn.  Thank goodness Jobs returned and saved Apple.

 

As for this cocky hedge fund, they are greedy rich man's funds which would destroy a company for their profit.

Many companies have been crippled by hedge funds greedy financial games, some have survived to live again.

 Last year a CDN phone company was attacked by a NYC hedge fund, over their two classes of shares. Fortunately the phone company won that attack  and the hedge fund left with their tail between their legs.

May the same happen to this destructive greedy hedge fund !

post #11 of 20
I will vote against anything this guy puts asks forth. He ultimately does not have my intrests as an APPl investor at heart, but rather his rich clients.
post #12 of 20
Quote:
Originally Posted by GQB View Post

Oh great... With entry level already too high for mortals, this entitled jerk wants to dilute our shares with new 'hot shot' shares that only he and his friends can afford, with higher benefits to boot.
Screw you.

I concur with you 100% This guy is a parasite. I encourage all APPL owners to vote along with the board recommendations, not this jack ass

post #13 of 20

I think Einhorn is right in the lawsuit but is wrong in the big picture. I said the same thing last week when AI and NYT, and Reuters, got the story wrong.

 

Any which way, somewhere, forget what website, the Apple board won't issue preferred shares without majority approval, regardless if this measure passes via the stockholders. 

post #14 of 20
I'm surprised there's no mention here that CALPERS and other big AAPL shareholders back Apple on the proposition issue of bundling and that a major Greenlight investor is critical of Einhorns suit as a waste of time.
post #15 of 20
Quote:
Originally Posted by drobforever View Post

I'm not siding with Greenlight but there's nothing wrong with thinking in general that the power should ultimately reside with the shareholders. Afterall shareholders are the owners of the company, not the management. Management is basically hired to manage the company for the shareholders. Now of course a lot of people here would think AAPL is actually Steve Job's company, but he's gone. Tim and other executives really can't claim they 'built the company'. 

Wrong. Tim and the Apple board are actually acting more in the shareholder's behalf than Einhorn. Apple wants the shareholders to decide whether to issue preferred stock. Einhorn wants the board to be able to do it even without shareholder approval. Einhorn's proposal is anti-shareholder.
Quote:
Originally Posted by All Day Breakfast View Post

I'm surprised there's no mention here that CALPERS and other big AAPL shareholders back Apple on the proposition issue of bundling and that a major Greenlight investor is critical of Einhorns suit as a waste of time.

I haven't seen ANYONE supporting Einhorn in this. After his case gets thrown out, he's going to look even more ridiculous than his history makes him look. (granted, he might possibly win the argument that Apple has to re-issue the proposals without several items bundled together, but he's going to lose the real battle).
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #16 of 20
I did not know they had made a sequel to "Liar Liar."
post #17 of 20
Just FYI, for everyone referring to Apple by its stock, it's AAPL not APPL.
post #18 of 20
Quote:
Originally Posted by jragosta View Post Einhorn's proposal is anti-shareholder.
I haven't seen ANYONE supporting Einhorn in this. 

Now Topeka Capital has come out in favor of Einhorn's proposal.

melior diabolus quem scies
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melior diabolus quem scies
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post #19 of 20
Quote:
Originally Posted by Gatorguy View Post

Now Topeka Capital has come out in favor of Einhorn's proposal.

OK. So two people out of Apple's tens of thousands of investors. Big deal.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #20 of 20

Mr. Einhorn:

    Thank you for your interest in furthering my "shareholder value" by attempting to extort Apple Inc. to issue preferred shares to you, your cronies and your clients. Please be informed that I view the value of my shares in Apple to be derived from the continued good performance of management, which I believe to be reflected in the company's earning more money than it knows what to do with. I shall not be voting my shares in favor of any proposal espousing your short-sighted, singularly greedy view of the corporate structure.

    Good day to you.

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