Hedge fund manager David Einhorn, the CEO of $8 billion Greenlight Capital, wrapped up an hour-long conference call about Apple.
Einhorn, whose fund owned ~1.5 million Apple shares at the end of the fourth quarter, has been taking aim at the tech giant's massive cash hoard.
Einhorn has been urging Apple investors to vote "No" on Apple's Proposal 2 in its proxy later this month that will eliminate the company's ability to issue preferred stock.
During his call today, he laid out his plan for Apple. Essentially, what he wants Apple to do issue perpetual preferred stock — what he calls "iPrefs."
What's more is Einhorn said that Apple wouldn't even have to use that massive $137 billion cash pile, which he called a "war vault."
"In the last week, Mr. Cook has called the idea 'creative,' and said that Apple would study the proposal carefully. We look forward to meeting with Mr. Cook and his team shortly," Einhorn said on the call.
We've included screenshots of his webcast presentation in the slides that follow.
"We’re going to start with how conventional thinking has led Apple and other large tech companies into having such bloated balance sheets. We’ll talk about the usual solutions, and why they don't align well with Apple's priorities. Then we're going to walk you step by step through our idea."
See the rest of the story at Business Insider
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