Print 32 comment(s) - last by BifurcatedBoat.. on Feb 14 at 3:56 PM

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 maugrimtr on 2/14/2013 9:42:01 AM , Rating: 1
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

"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
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