Hedge fund manager David Einhorn, who is currently suing Apple (AAPL) to force it to send a bigger chunk of its $137 billion in cash to shareholders, will host a conference call on Thursday to discuss the merits of his proposal for issuing preferred stock to investors.
Einhorn’s $8 billion Greenlight Capital announced [via Reuters] on Wednesday that Mr. Einhorn will address Apple shareholders directly to argue his position on the company’s issuance of perpetual preferred stock.
But as Einhorn was gearing up for tomorrow’s meeting, Nathan Cummings Foundation, one of Greenlight Capital’s investors, criticized the fund’s opposition to Apple’s so-called “Prop 2” proposal which according to Einhorn, would establish a par value for Apple stock and eliminate the ability of Apple’s board of directors to issue preferred stock at its discretion.
In a letter [via Bloomberg] to Mr. Einhorn, NCF’s Chief Executive Officer Simon Greer said: “By insisting that the company retain the ability to issue preferred shares — for whatever purpose — without a shareholder vote, you undermine shareholders’ rights”.
In response, Einhorn said: “This is a former investor who redeemed. We wish them well.”
Apple has declined to comment on Einhorn’s plan to appeal directly to shareholders. Chief Executive Tim Cook last week rejected the basis of the lawsuit, calling Greenlight’s legal moves “a silly sideshow.”
Greenlight Capital’s conference call and webcast will take place on February 21, 2013 at 2:00 p.m. Eastern. The conference call may be accessed by dialing 1-800-901-5241 (U.S. callers) or 1-617-786-2963 (International callers) and entering the passcode 62063868#. The Webcast can be accessed by clicking here.