David Einhorn's Greenlight 'Applauds' Apple (AAPL) Capital Return Plan

April 23, 2013 6:19 PM EDT
While Apple (NASDAQ: AAPL) didn't go for the hedge fund manager's 'iPrefs' idea, David Einhorn and his Greenlight Capital hedge fund were positive on the company's announcement Tuesday to tap the debt market and more than double its capital return program.

With second quarter earnings, Apple announced that its Board has increased its share repurchase authorization to $60 billion from the $10 billion level announced last year. In addition, the Board has approved a 15% increase in the Company's quarterly dividend and has declared a dividend of $3.05 per common share. In conjunction with the expanded return of capital program, Apple said it plans to borrow with details on those plans expected in the near future.

"We applaud Apple's decision to borrow money and return excess capital to shareholders, an idea that was off the table only months ago," Greenlight Capital said in a statement to StreetInsider.com. "This positive development represents a more shareholder friendly capital allocation policy and demonstrates the conviction of Apple's management and board in the Company's future."

After trading up over $20 per share on the initial announcement, shares of Apple are now fractionally lower to $405.75 after-hours Tuesday.

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