David Einhorn tries to woo Apple shareholders with cash

Greenlight's "iPrefs" proposal. Click to expand.

(Credit: Greenlight/CNET)

Apple's cash problem is easy to solve, one of its most outspoken shareholders said today.

During a conference call with Apple investors today, David Einhorn of Greenlight Capital -- which is currently in litigation with the iPhone and iPad maker -- made the case that Apple's strategy to stockpile cash was flawed, and argued that his plan to bring some of that back to investors could be solved with a new program called "iPrefs."

"Many have asked, why not just increase the dividend?" Einhorn said. "This sounds too complicated. It's not complicated. It's merely unfamiliar."

Greenlight's solution to a possible increase in Apple's own dividend program is called iPrefs -- a $50 stock with a 4 percent annual dividend. These could be traded separate from Apple's existing stock, and current investors would be given "one or more iPrefs at no cost," Einhorn said.

The program could help Apple repatriate some of its offshore cash pile, and open up the company to a new gro... [Read more]