Apple Preferred Stock Plan Would Help Value, Einhorn Says

Greenlight Capital Inc. founder David Einhorn, reiterating his call for Apple Inc. to return more cash to shareholders, said issuing preferred stock would unlock about $150 a share in value.

“Apple’s attitude towards managing its cash has been exceedingly non-innovative,” Einhorn said on a conference call yesterday. Apple should use $47 billion to issue preferred stock with a quarterly dividend of 50 cents indefinitely, he said. Shareholders would see a benefit of $61 a share more under this plan than with other ways of returning cash, Einhorn said.