Billionaire hedge fund manager David Einhorn of Greenlight Capital unveiled his plan Thursday for Apple to issue preferred stock. He says the scheme will give shareholders more value without touching the company\'s $137 billion cash hoard. Earlier this month, Einhorn filed a lawsuit against Apple, pushing the company to use part of its cash pile to issue preferred stock to investors. Einhorn\'s plan involves what he calls \"iPrefs,\" a class of preferred stock with a value of $50 that yields an annual dividend of 4%, or $2. He says the stock would target \"investors interested in safe income.\" \"Our solution is not customary, but we think you will agree that we are presenting the best solution for unlocking the most value for Apple shareholders without impinging in any way on Apple\'s business plan,\" Einhorn said during a conference call to investors. For every share of common stock in Apple, an investor would earn an iPref with no maturity date, says Einhorn, so the stock could continue to pay out indefinitely. Shareholders could keep the stock, or sell it into the market. Einhorn suggests Apple \"start small\" by issuing a limited number of iPrefs. Once the market establishes a price and Apple continues growing, the company can opt to distribute more shares. He also insists the move will allow Apple to keep its pile of cash and maintain strategic flexibility. \"We want them to keep innovating, and to keep designing products that we can\'t imagine ever having lived without,\" he says. \"We would never think of suggesting anything that could interfere with them doing that.\" Einhorn argues his plan would unlock more value for shareholders compared with traditional methods, such as raising the dividend or buying back shares. Apple shareholders will vote Wednesday on a proxy that would make it more difficult for Apple to issue preferred stock, which Einhorn continues to rail against. \"Apple\'s attitude toward managing its cash has been exceedingly non-innovative,\" he says. Einhorn also notes that his plan is not complicated as some suggest. \"It\'s merely unfamiliar,\" he says. \"It\'s also simple and innovative.\" \"Apple is a phenomenal company filled with talented people creating iconic products that consumers around the world love,\" Einhorn said in a Feb. 7 statement. \"However, like many other shareholders, Greenlight is dissatisfied with Apple\'s capital allocation strategy.\" In a statement released near the timing of the lawsuit, Apple said it is \"thoroughly evaluating\" Einhorn\'s proposal. The company also says it has already returned $10 billion to shareholders as part of a plan to give back $45 billion over the next three years. Apple CEO Tim Cook seemed to dismiss Einhorn\'s lawsuit in comments during the recent Goldman Sachs Technology and Internet Conference. \"It\'s a silly sideshow,\" Cook told investors. Einhorn says he \"looks forward\" to meeting with Cook and his team to discuss his plan. Shares of Apple fell $2.79, or 0.6%, to $446.06, compared with a peak of nearly $700 mid September. Source:USATODAY