Monday, 30 March 2015
Last updated 2 days ago
Feb 22 2013 | 1:51pm ET
Greenlight Capital's David Einhorn did his best impression of the late Steve Jobs yesterday as he sought to convince his fellow Apple Inc. shareholders to push the company to issue preferred shares.
In an hour-long conference call, Einhorn laid out his plans for Apple to issue perpetual preferred stock as a way to return some of its huge $137 billion cash horde to investors. He called it, appropriately, the iPref. And he even paraphrased one of Jobs' more Orwellian mantras, about consumers not knowing what they want until you show it to them.
"Here's the product that Apple doesn't yet know it needs," Einhorn said.
Under Einhorn's plan, Apple would spend $47 billion to issue preferred shares with a face value of $50 that would pay a 50-cent quarterly dividend in perpetuity.
"Apple can redeem them for face value, but shareholders should not anticipate getting the face value," he explained. "They should expected to receive 50 cents per quarter, every quarter, forever."
"Over time, the iPrefs should be highly liquid. We expect the market to accept the iPrefs as premium quality instrument."
Einhorn said the move would also boost Apple's stock price.
Greenlight has sued Apple over the company's plan to bundle a proposal that would restrict its ability to issue preferred shares with two other, more widely-supported, proxy proposals.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…