Apple CEO Refers to Einhorn Lawsuit as "Silly Sideshow," "Bizarre"
February 12, 2013 4:32 PM
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Cook said the board is currently discussing Einhorn's proposal, and even called it "creative"
Apple CEO Tim Cook called David Einhorn's lawsuit against the iPhone maker "a sideshow," citing the number of media and television interviews Einhorn has participated in since it was launched.
Einhorn, an American hedge fund manager, is suing Apple over a proposed change to the company's charter that would throw out Apple's ability to issue blank check preferred stock per its judgment. More specifically, the lawsuit opposes how this charter change is packaged together with two other proposals in "Proposal 2."
Einhorn wants Apple to open up its fat wallet of $137 billion in cash and issue prepetual preferred shares that pay dividends to existing shareholders.
Cook said the board is currently discussing Einhorn's proposal, and even called it "creative." However, Cook has called the lawsuit and the number of media interviews surrounding the topic "a silly sideshow" and said it's "bizarre that we would find ourselves being sued for doing something good for shareholders."
"This is a waste of shareholder money and a distraction and not a seminal issue for Apple," said Cook. "That said, I support Prop 2. I am personally going to vote for it."
Einhorn is the influential investor that
pushed for Microsoft CEO Steve Ballmer's resignation
back in May 2011. He said Ballmer was key in many of Microsoft's misses at the time, such as puchasing Skype for nearly twice its market valuation and missing the boat when it came to tablets.
This article is over a month old, voting and posting comments is disabled
2/12/2013 5:08:58 PM
It's a waste of shareholder money to... keep all that cash locked up away from shareholders, because it's their money.
So yeah, there is a waste of shareholder money, on Apple's end.
The simple solution for Apple would be to do what he's requested, which is split the voting on the issues they are putting to the shareholders. Lawsuit gone.
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
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