Investor Sues Apple over Plan to Eliminate Preferred Stock, Wants More Cash Distributed | News

Investor Sues Apple over Plan to Eliminate Preferred Stock, Wants More Cash Distributed

NEW YORK, N.Y. - With its annual meeting looming and its stock on the decline, Apple is facing a rebellion from an activist investor who wants the company to stop stockpiling cash and give it to shareholders instead. Greenlight Capital said Thursday that it is suing Apple in a New York federal court over the company's proposal to eliminate preferred stock. David Einhorn, who heads the investment fund, said the proposal would close down one avenue for Apple to reward shareholders with more cash. Apple is still the world's most valuable company, but its stock has lost 35 per cent of its value since September, as it's become obvious that its once-rapid growth has slowed down. The company is fabulously profitable, and Wall Street wants the company to share more of that money with its shareholders rather than tucking it away in low-yielding bank accounts. "Apple has $145 per sh...

Full article: http://www.wirelessweek.com/news/2013/02/investor-sues-ap...