Investor wants Apple to distribute more cash
NEW YORK -- An activist investor wants Apple Inc. to distribute more of its ballooning cash hoard to shareholders. 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 Greenlight, said the proposal would prevent Apple's board from unlocking shareholder value.
Apple, the world's most valuable company, is drawing increasing criticism from investors who are pushing the company to do more with its enormous pile of cash -- $137 billion and growing.
Einhorn told CNBC on Thursday that Apple has a Depression-era mentality. He compared Apple to his grandmother "Roz," who grew up during the Great Depression. She was so careful about saving money, he said, that she never left messages on his answering machine out of concern that she'd be charged for the call.