Apple shareholders to meet; stock split rumored
By Hayley Tsukayama,
Apple shareholders are buzzing over rumors that the company will announce a stock split as it prepares to opens its doors to investors Wednesday.
Rumors that Apple may be planning a stock split have been circulating for weeks, but gained steam when hedge fund manager Doug Kass tweeted Tuesday that he had heard Apple was planning the announcement.
After Kass’s tweet, the company’s shares spiked and he sent more messages clarifying that what he had heard was only a rumor.
“Apple continues to climb— now up by over $8. I continue to pare back as the rumor seems to be baseless based on current share authorization,” Kass wrote in a subsequent message.
Apple chief executive Tim Cook said last year that he believed there was “very little support” for a split, according to a report from the Wall Street Journal.
There are plenty of skeptics saying Apple is unlikely to announce much of anything at Wednesday’s meeting. It’s certainly poised to be less dramatic than expected, after a judge ruled the company couldn’t move forward with a proxy measure that prompted a lawsuit from hedge-fund investor David Einhorn.
Einhorn isn’t expected to be at the meeting, according to a report from All Things Digital, though the site’s John Paczkowski notes that it’s likely that another shareholder will ask whether Apple might consider his proposal to use its $137 billion stockpile of cash to issue high-yield preferred shares to current shareholders.
Fortune’s Philip Elmer-Dewitt wrote that it’s not really Cook’s style to release anything noteworthy or newsworthy at a shareholders’ meeting.
“Cook knows his stuff and chooses his words carefully,” he said, adding that the cautious Apple executive likely will wait to share his plans for Apple’s cash hoard for another time.
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