Greenlight Capital urges Apple shareholders to oppose company’s proposal
Greenlight Capital ("Greenlight") -- a value oriented, research-driven investment management firm -- is urging fellow shareholders of Apple to oppose the company’s attempt to amend its corporate charter.
Greenlight is voting against Proposal 2 in Apple’s proxy, which would eliminate preferred stock from Apple’s charter and restrict the Board’s ability to unlock the value on Apple’s balance sheet. Greenlight is asking all shareholders to also vote against Proposal 2 at the upcoming Annual Meeting of Shareholders to be held on Feb. 27.
"We believe Apple must examine all of its options to unlock the growing value of its balance sheet for all shareholders," says David Einhorn, president of Greenlight. "Over the past several months, we have had an ongoing dialogue with Apple regarding one option to do so, namely the creation of a new security, a perpetual preferred stock that would be distributed at no cost to Apple’s existing shareholders, and would provide an attractive, sustainable dividend while preserving Apple’s financial resources to pursue its business strategy."