Einhorn Has This New Ploy Against Apple
David Einhorn is pulling out all the stops in his battle against Apple (NASDAQ:AAPL). Einhorn’s Greenlight Capital announced on Wednesday that it would make a direct appeal to other shareholders in an attempt to stop the company from getting approval for its preferred stock proposal.
The hedge fund manager said he would host a public conference call on Thursday to argue his case to get Apple to not limit issuing preferred stock to its investors. Apple’s proposal, up for voting in its annual meeting on February 27, will get rid of the option of its board issuing preferred stock without getting shareholder permission.
Greenlight Capital, which has disgreed with the idea, also filed a court case seeking an injunction to block the vote. The case in underway in a New York district court, with a decision expected ahead of the vote.
“Greenlight continues to ask shareholders to vote against Proposal 2 in Apple’s proxy, which would eliminate preferred stock from Apple’s charter and restrict the board’s flexibility on capital allocation decisions,” the fund said in a statement on Wednesday. “On the call, Greenlight will provide additional details regarding the options available to Apple, including the merits of Greenlight’s suggestion of distributing perpetual preferred stock to Apple shareholders for free.”