Loading...
See More

Investor sues Apple in battle over cash

Feb 08 2013 13:25 AFP

(File, AP)

Related Articles

Judge rejects Apple patent award demand

Is the Apple honeymoon over?

Apple results spur price target cuts

Apple disappointment hits European shares

Weak outlook tarnishes Apple's results

Smartphone sales exploded in 2012 - poll

 

San Francisco - Activist investor David Einhorn sued Apple on Thursday in a bid to force the giant technology company to distribute more of its $137bn in cash to investors.

Einhorn, the billionaire hedge fund manager of Greenlight Capital, filed the lawsuit in New York.

He wants the court to order Apple to allow a separate shareholder vote about the company's ability to issue preferred shares that would yield a dividend payment to shareholders.

Einhorn claimed that proposals scheduled for the company's annual shareholders' meeting scheduled for February 27 would make the issuance of preferred shares more difficult.

Apple's cash holdings represent nearly a third of the company's total value. But the company has never provided investors with a clear explanation of why it holds such large sums in low-yielding investments rather than returning it to shareholders.

Last year the company announced plans to return $45bn of that stockpile back to shareholders and in a statement on Thursday said it had already returned $10bn and was looking at ways of increasing the returns.

"As part of our review, we will thoroughly evaluate Greenlight Capital's current proposal to issue some form of preferred stock," Apple said. "We welcome Greenlight's views and the views of all of our shareholders."


Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

apple
NEXT ON FIN24X

 

Lastest Articles

Here is how to check your credit score and manage it Read More...
Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
5 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...