Investors calling on Apple to share cash savings

Calcutta News.Net
Saturday 14th August, 2010

Apple is coming under increasing pressure to cease its policy of hoarding cash and instead pay its shareholders a special dividend.

According to Toni Sacconaghi, an analyst at Bernstien Research, the company is “eroding shareholder value” by hoarding its growing $46 billion balance in an account where it is earning just 0.76% in annual interest.

The company, which makes the iPod, iPhone and iPad has enough cash in reserve to be the 22nd largest company by assets on the FTSE 100 if its cash reserves were listed in London.

The company could single-handedly buy British Airways, British Telecom and BskyB and still have sizeable cash reserves.

Apple’s shares have increased 177% since the beginning of 2009, but their value is being hampered by the company’s unwillingness to share its reserves with investors.

Apple’s CEO has indicated he would rather use the cash balance to invest in the company and fund potential acquisitions.

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