Apple boss calls lawsuit ‘sideshow’

Published on 13/02/2013 00:00

Apple boss Tim Cook yesterday called David Einhorn’s lawsuit against his company a “sideshow” but said the board is considering the star hedge fund manager’s proposal to issue preferred stock, calling it “creative.”

Waving off claims that Apple is clinging to a “Depression-era” mentality, Cook said the board is in “very active discussions” on how to share more of its $137 billion hoard of cash and marketable securities.

Einhorn is suing Apple as part of an effort to get it to share more of its cash pile, one of the largest in the technology industry. Einhorn wants the iPhone maker to issue perpetual preferred shares that pay dividends to existing shareholders, arguing that such a vehicle would be superior to dividends or share buybacks.