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  (Source: amazonaws.com)
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.

Source: Reuters



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RE: LoL?
By Tony Swash on 2/13/2013 12:15:10 PM , Rating: -1
quote:
Tony,

This is the stupidest thing you have ever said. It is so stupid that I now know with absolute certainty that nothing you say has the benefit of intelligence.

Apple answers to its shareholders. The cash Apple holds? That belongs to the shareholders. If Apple actually tried to use that to survive by spending it down towards zero it would have only one result. Its share price would nose dive.

Apple invulnerable? Are you so completely consumed by being a fanboi that you're THAT far gone? After ten years of losses, nobody would want Apple stock - you do not invest in something whose value is eroding. Go look at HP's and Nokia's stock for the past few years.

That would prompt a shareholder revolt, the outing of the board, and a possible takeover (leveraging Apple's assets - assuming it hasn't spent them all!).


Jeez - do you struggle with the concept of hypotheticals? I am not suggesting that Apple will stop selling products for tens years, or that if they did they would simply just sit by and spend their cash mountain and do nothing? The remark about surviving for ten years was a way of illustrating just what a buffer Apple's cash mountain is for the company, to highlight the size of the insurance policy it creates.

Apple do give money back to the shareholders in the form of dividends, they may give more in the future. But mostly what the managers of the company have to ensure is that the company has the resources to manage the rapidly shifting nature of the technology markets the company operates within. Apple has been ramping up it's capital investment programme sharply in the last few years, it now rivals that of Intel's in size, and I expect Apple to invest even more in shaping and improving it's supply chain. Apple has chosen to build it's products to very high specifications and often involving cutting edge new manufacturing techniques, and this has to be done while ensuring the smooth production of the world's top selling handsets and tablets in huge numbers. That is not easy and it requires a lot of cash.

Why do people who don't much like Apple, mostly despise it's customers and who want to see Apple stumble or be beaten in the market cry crocodile tears over the poor apple shareholders denied their access to the cash mountain? Crass flatulent hypocrisy is why.


RE: LoL?
By Cheesew1z69 on 2/13/2013 12:26:27 PM , Rating: 3
quote:
Jeez - do you struggle with the concept of hypotheticals?
Jeez - why are you such a douche?

quote:
Apple do give money back to the shareholders in the form of dividends, they may give more in the future.
And that didn't start until AFTER Jobs died as far as I am aware.


RE: LoL?
By Tony Swash on 2/13/2013 2:04:43 PM , Rating: 1
quote:
Jeez - why are you such a douche?


You have been to debating classes again haven't you? I can tell because of the logical way you argue against differing points of view, which is quite hard, which is why the slow witted tend to just fall back on insults.

quote:
And that didn't start until AFTER Jobs died as far as I am aware.


And that's relevant how?


RE: LoL?
By Cheesew1z69 on 2/13/13, Rating: 0
RE: LoL?
By Cheesew1z69 on 2/13/2013 2:25:52 PM , Rating: 2
Oh, and have fun with your -1 ... LOL


RE: LoL?
By maugrimtr on 2/14/2013 9:42:01 AM , Rating: 1
quote:
Why do people who don't much like Apple, mostly despise it's customers and who want to see Apple stumble or be beaten in the market cry crocodile tears over the poor apple shareholders denied their access to the cash mountain? Crass flatulent hypocrisy is why.


Apple has stumbled. See price movement for past year. This is indicative of Apple's price being inflated by unreasonable expectations. So quit the preaching. Shareholders are in it to make a return. Apple share prices falling as they eat their cash cake is not part of that - dividends are a very minor theme in many Apple investors of recent years (unless you were shorting it - in which case, congratulations).

You still ignored the point I made. The cash is not a survival buffer. It's for reinvestment, improving returns, and generally ensuring Apple remains competitive (yes, including short term losses where necessary). In the long term, a losing company using up that case to cover losses for many years just signals everyone to start dumping shares before their price erodes to pennies.


RE: LoL?
By retrospooty on 2/14/2013 10:49:25 AM , Rating: 2
"You still ignored the point I made"

Tony Swash 101:
If the point makes Apple look better - make it
If the point makes Apple look worse - ignore it
If the point makes a competitor look better - change the subject and/or ignore it


"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson

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