Hedge fund honcho David Einhorn is having trouble enlisting allies in his battle to get his hands on some of Apple’s $137 billion cash hoard.
Two more big investors have come out in support of Apple’s proposal to eliminate “blank check” preferred stock – a stance Einhorn has called on shareholders to reject.
The California State Teachers’ Retirement System, a $157.8 billion pension fund, and the New Jersey Division of Investment, which manages $70 billion in pension money , told The Post they are siding with Apple against Einhorn.
“We generally support good corporate governance initiatives, and this appears to be one,” said Bill Quinn, a spokesman for the New Jersey pension fund, which holds 1.8 million Apple shares.
CalSTRS, which owns 1.6 million Apple shares, supports the proposal because “blank check” preferred stock “can be used as anti- takeover defenses and entrench a board,” said Anne Sheehan, the director of corporate governance.
Last week, the $254.1 billion California Public Employees’ Retirement System – the biggest US pension – said it backs Apple’s proposal. Florida’s $127 billion pension fund also tends to look askance at dual-class structures, said Michael McCauley, a senior executive for the fund.
At issue is Apple’s proposal to prohibit the board from issuing preferred shares without shareholder approval.
Last week, Einhorn fired off a letter urging Apple shareholders to reject the change, saying it restricts the board’s ability to “unlock substantial shareholder value.” Shareholders are slated to vote on the proposal at Apple’s annual meeting set for Feb. 27.
Einhorn, head of $8 billion Greenlight Capital, has been pushing Apple to return some of its cash to investors for months. He wants it to issue preferred shares that pay a 4 percent dividend and trade separately from the common stock. Apple said it is considering his proposal.
The New York Post
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