In the latest round in the fight against Apple, Greenlight Capital founder David Einhorn defended his plan for the company to issue preferred stock (which he calls iPrefs) in a public call with other investors on Thursday. In Einhorn’s iPref system (see the full slideshow on Business Insider), investors would be able to receive one iPref for every share of Apple stock. The iPrefs would be own worth $50 each, pay a 4% annual dividend and could be sold or bought on the market, independently of Apple stock.
“While Apple wants to keep its cake, the shareholders get to eat it, too,” Einhorn argued. “The iPref program will enable the shareholders to recognize the value in the balance sheet.” He said he looked forward to talking to Apple executives soon.
Meanwhile, the two sides are awaiting a ruling from U.S. District Judge Richard Sullivan, which is expected to come before the Feb. 27th shareholders meeting.