Rebel shareholder buying more Apple stock following buyback plans
Just months after leading a shareholder revolt against Apple, hedge fund manager David Einhorn revealed on Tuesday that he’s been buying more stock in the company.
In a conference call with investors of Greenlight Capital, Einhorn confirmed that the firm had increased its stake in Apple, though he did not reveal by how much, according to Reuters.
Einhorn called Apple’s plan to issue $17 billion in bonds to increase its dividend and stock buyback plans to $100 million a “major step forward.”
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“We’ve added to our Apple position. Now we just wait for the release of Apple’s next blockbuster product,” Einhorn said.
That seems to settle, at least for now, a feud that erupted earlier this year after Apple’s stock plummeted for several months. Einhorn had been pressing Apple to return more of its cash to shareholders, and became upset about a proposal on the company’s annual proxy that he believed might make that more difficult.
The proposal would have required a shareholder vote if the company wanted to issue a special class of stock that Einhorn wanted. Einhorn sued to have the proposal blocked, and a judge sided with him. Though Apple Chief Executive Tim Cook had dubbed Einhorn’s lawsuit a “silly sideshow,” the company had to drop the proposal.
On Tuesday, Apple’s stock was down $1.81 in midday trading to $458.90. However, it’s still up from its recent low of $390.53 a share last month, before the company announced the expanded buyback plan.
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