Business Insider's Jay Yarow is live blogging Apple CEO Tim
Cook's talk at the Goldman Sachs technology conference in San Francisco. Cook is ripping into hedge fund manager
David Einhorn, the founder of Greenlight Capital who took aim at Apple's
massive cash reserves it has on its balance sheet last week saying it has a
"depression era mentality”.
Here's Cook's reponse from Yarow's live blog: Apple
doesn't have depression era mentality. Apple makes bold product bets. Last year
$10 billion CapEx, do the same this year, investing in R&D, new products,
supply chain, we're acquiring some companies. I think it's hard ... or at least
my definition wouldn't include investing a pair of 10s over two years, and $45
billion back to shareholders, I don't know how a company with despression era
mindset would have done all those things....
And more on the lawsuit... It centers on Prop 2. Right of shareholders.
It's not about whether returns additional cash to sharholders, not about how
much to return to shareholders, not about mechanism to return it, it's about
the right of shareholders. In 2012, we were looking at what we could do to
improve goverence, one item that came out was we should eliminate a blank check
preferred. Not that Apple can release preferred, but if we do it we need to go
to our common shareholders. Frankly, I
find it bizarre that we would be sue for doing something that would be good for
shareholders. It's a silly sideshow…..”
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