London, Feb 8 (ANI): A Wall Street hedge fund manager is suing Apple in a bid to force the teach giant to give more of its 137.1 billion dollars cash pile to investors, a report had said.
David Einhorn, the head of Green Light Capital, said Apple must “examine all of its options to unlock the growing value of its balance sheet for all shareholders”.
Until recently, Apple shares were the hottest on Wall Street as the success of the iPhone and iPad sent them to a record high of 705 dollars in September.
Since then, fears that Apple’s growth is slowing and its margins are shrinking have seen the shares lose more than a third of their value.
Tim Cook is facing pressure to find ways of returning the cash the company has accumulated to shareholders.
According to the paper, Einhorn is suing to prevent Apple eliminating preferred shares, something the iPhone maker wants to do at its annual shareholder meeting this month.
Although preferred shares do not carry voting rights, they do typically carry a greater responsibility to pay dividends, the paper said.
The hedge fund manager instead wants Apple to issue more preferred shares that would offer shareholders dividends, it added.
Einhorn described Apple as a “phenomenal company filled with talented people creating iconic products”, but said the proposed change “unnecessarily limits the board’s flexibility to distribute preferred stock as a means of unlocking shareholder value”. (ANI)