Feeds

'Depression-era grandma' Apple responds to bolshy investor

Board to 'evaluate' the proposal

Next gen security for virtualised datacentres

Apple has taken the unusual step of publicly responding to a complaint from a shareholder who compared the company to his cash-hoarding grandmother.

David Einhorn, president of Greenlight Capital, said that Apple Inc had a "depression era" attitude to cash that reminded him of his grandmother who refused to leave voicemail messages because she didn't like being charged for them. He told CNBC:

[Apple] has the mentality of a depression era… people who have gone through traumas - and Apple has gone through a couple of traumas in its history - feel like they can never have enough cash

Imagine 137 billion of those dollar bills

With Apple shares down in value, Einhorn urged Apple to let shareholders get at some of the $137bn that the company has left sitting around in cash holdings.

The recent, severe under-performance of Apple’s shares, which are down approximately 35% from their peak valuation, underscores the need for the Company to apply the same level of creativity used to develop revolutionary technology for its consumers to unlock the value of its strong balance sheet for its shareholders.

Apple currently has $137bn in cash, up from $97.6bn 11 months ago.

In May 2012, Einhorn petitioned Apple to issued preferred stock with a guaranteed yearly return of 4 per cent to all current shareholders. Apple HQ refused in September, and with its latest set of proposals to shareholders, Cupertino plans to make it much harder for preferred stock to be agreed upon. Shareholders have to vote on Proposal 2 on 27 February.

Einhorn has filed a lawsuit against Apple and issued a public letter to shareholders urging them to vote against a proposal from Apple management that would eliminate the power of the Board to decide to offer preferred stock. Under Apple's Proposal 2, the Board and shareholders would have to vote in a decision to issue preferred stock, so while it would still be possible, it would be less likely.

In Apple's response last night, the company says it already has shaken down some of the cash value to shareholders, and is considering Einhorn's points.

The company said:

Apple’s management team and Board of Directors have been in active discussions about returning additional cash to shareholders. As part of our review, we will thoroughly evaluate Greenlight Capital’s current proposal to issue some form of preferred stock.

®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.