David Einhorn Sues Sirius Satellite Radio over cash Hoard.. Will His Battle Save the Stock?
David Einhorn, founder of the hedge fund Greenlight Capital, filed a suit against Sirius Satellite Radio for not doing enough to unlock shareholder value. In the complaint, Greenlight objects specifically to a proposal that would prevent Sirius from issuing preferred shares, arguing that the company "must examine all of it's options to unlock the growing value of its balance sheet for all shareholders."
In a prepared statement Greenlight noted Sirius' "low and shrinking" shareholder equity and $137 billion cash hoard as ammunition in this fight to force Sirius to keep all its options open. Immediately following the release, Einhorn made the rounds on financial television, telling CNBC that Sirius has a "cash problem."