This afternoon, Apple released a statement saying that it is in talks with Greenlight Capital. Here’s what the company had to say: <\/p>\n
\nBy early last year, Apple\u2019s cash balance had built to a point beyond what we needed to run our business and maintain flexibility to take advantage of strategic opportunities, so we announced a plan to return $45 billion to shareholders over three years. As of next week we will have executed $10 billion of that plan.<\/p>\n
We find ourselves in the fortunate position of continuing to generate large amounts of cash, including $23 billion in cash flow from operations in the last quarter alone. <\/p>\n
Apple\u2019s management team and Board of Directors have been in active discussions about returning additional cash to shareholders. As part of our review, we will thoroughly evaluate Greenlight Capital\u2019s current proposal to issue some form of preferred stock. We welcome Greenlight\u2019s views and the views of all of our shareholders.<\/p>\n
As a part of our efforts to further enhance corporate governance and serve our shareholders\u2019 best interests, Proposal #2 in our proxy includes some recommended changes to our articles of incorporation. These changes were recommended independently of Greenlight\u2019s proposal and would not preclude Apple from adopting their concept. Contrary to Greenlight\u2019s statements, adoption of Proposal #2 would not prevent the issuance of preferred stock. Currently, Apple\u2019s articles of incorporation provide for the issuance of \u201cblank check\u201d preferred stock by the Board of Directors without shareholder approval. If Proposal #2 is adopted, our shareholders would have the right to approve the issuance of preferred stock. As such, Proposal #2 has the support of many of our shareholders.<\/p>\n
We remain committed to having an ongoing dialogue with our shareholders to get perspectives around return of capital and driving shareholder value.<\/p>\n<\/blockquote>\n
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One of the big stories in tech today was that Greenlight Capital sued Apple to block a move that would eliminate preferred shares. Greenlight’s David Einhorn wrote a letter to shareholders calling Apple’s plan to discard preferred stock “an unprecedented action to curtail the company’s options.” The New York Times has an extensive report on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-641674","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/641674","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=641674"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/641674\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=641674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=641674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=641674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}