I'll just leave this here and let others explain what's going on here
http://www.businesswire.com/news/home/20130207005756/en/Greenlight-Capi…
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Probably pissed they are just sitting on $130+BN of cash...about 1/3 of market cap now.
Haven't researched it but I think Einhorn is arguing that current shareholders hsould get some sort of preferred stock instead of a cash dividend?
http://www.bloomberg.com/news/2013-02-07/apple-urged-by-greenlight-agai…
He's arguing against a proxy vote that would restrict apple's manegement in ways to give back to shareholders.
this is his go-up perpetual preferred thing. idea is to segment investor base into those who invest for growth and those who invest for yield
yea but who cares if they change the rules, management isn't interested in doing a pref distribution either way.
and why is all the focus on preferreds...is it better for us/einhorn if we get that instead of cash?
He'll push management along with other shareholders to issue a preferred. Preferred stock usually comes with a dividend which will be cash out of AAPL's banks into investor's pockets = "unlocking shareholder value". He wants these preferreds to be issued to all shareholders.
Here's the followup
http://video.cnbc.com/gallery/?play=1&video=3000146500
This would be a good buyside interview question and/or case study: "Why does David Einhorn believe issuing preferred shares would unlock value in Apple?" There so many directions you can take this question.
Est voluptatem ullam a ratione amet reprehenderit sed. Fugit consequatur quod provident rem harum. In et qui impedit nulla praesentium accusamus. Vitae vitae animi eum.
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