Apple Rises After Saying It's in Talks to Return Additional Cash

Feb. 7 (Bloomberg) -- Cory Johnson reports on Apple's statement that it has been in talks about returning cash to its shareholders. He speaks on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Apple Inc. rose as much as 3.1 percent after saying it’s in “active discussions about returning additional cash to shareholders,” and that it’s considering a proposal that it issue preferred stock.

Apple, which has an existing plan to return $45 billion to shareholders over three years, said it will have completed $10 billion of that plan next week.

Greenlight Capital Inc.’s David Einhorn said earlier today that Apple’s cash hoard equates to about $145 a share, and he joins other investors in saying that the company is hanging on to too much of it.

Apple shares rose as high as $468.82 after the announcement. Through yesterday, the stock had declined 35 percent since reaching a record on Sept. 19.

To contact the reporter on this story: Peter Burrows in San Francisco at pburrows@bloomberg.net

To contact the editor responsible for this story: Reed Stevenson at rstevenson15@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.