The fund manager who has taken Apple through the courts to stop it from allowing shareholders to vote on a measure that he believes could see Apple eliminate preferred stock from its charter, has made an appeal to Apple shareholders to join him in a conference call later today.
Greenlight Capital's Einhorn wants the opportunity to tell Apple shareholders why he thinks that Apple should reward shareholders with preferred stock.
He has been urging Apple shareholders to oppose the Apple proposal as he believes it could impede Apple's ability to unlock shareholder value.
Einhorn, who controls more than a million AAPL shares, is demanding that the company gives more of its $137 billion cash pile to investors.
Not everyone is in support of Greenlight Capital's move. Reuters reports that Nathan Cummings Foundation CEO Simon Greer is "dismayed" that Einhorn was suing Apple to prevent a vote on Proposal 2.
Greer wrote in a letter to Einhorn, which Reuters obtained: "We very much oppose your decision to enjoin the 2013 annual meeting and the vote on Resolution #2."
In a statement Greenlight replied: "This is a former investor who redeemed. We wish them well."
Reuters reports that Greer replied that his foundation remains an investor with Greenlight.
Speaking at the 2013 Goldman Sachs conference last week, Apple CEO Tim Cook dismissed the suit as a "silly sideshow' but he did say: "I think it's creative, and we are going to thoroughly evaluate their current proposal. We welcome all ideas from all of our shareholders, including Greenlight, and we're going to thoroughly consider it."
It appears that the judge in the matter may have sided with Einhorn, however. As we reported yesterday, Judge Richard Sullivan said: "I do think the likelihood of success is in favour of Greenlight."
Sullivan has confirmed he will make his ruling prior to Apple's shareholder meeting on 27 February.
Einhorn claimed that Apple's attempt to get shareholders to vote on a measure that he believes could make it impossible for the company to return more money to investors, would cause "an actual and imminent injury" to investors.
He claims Apple is violating US Securities and Exchange Commission laws by bundling a measure to limit preferred shares with two other proposals for vote at its annual shareholders' meeting on 27 February.
As we reported earlier this week, Einhorn picked up $146 million in Apple call options during the fourth quarter of 2012. This means that he has a $746 million position in Apple - and Apple is more than 11% of his fund's total value.
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