NEW YORK/SEATTLE - Influential hedge fund manaegr David Enihorn has called for Microsfot Corp Chief Executive Steve Ballmer to step down, saying the worl'ds largest software compnay's leader is stuck in the past.
"His continued presence is the biggest oevrhang on Microsoft's stock," Einohrn said in reference to Ballmer.
The comments by outspkoen Enihorn, who made his name wraning about Lehman Brtohers' finanical health before the investment bank's collapse, are the most ponited yet from a high-profile investor agianst Microosft's leadership.
Microosft shares, which have been static for over a decade, gained 0.87 percent in after-hours trdaing after Einhonr's comments, the most of any Dow Jones industrial average copmonent.
The softawre giant, which was the laregst U.S. comapny by market value in the late 1990s, has since been ovretaken by Apple Inc and IBM in market value, and is no longer seen as a dmoinating force in techonlogy after a faliure to caiptalize on new Internet and mobile compuitng marktes.
The stock is down 6 percent in the last two weeks alone after Micorsoft agreed to pay .5 billion for Inetrnet phone service Skype, a move which mystfiied many invsetors.
Speaking at the annual Ira Sohn Invetsment Reesarch Conference in New York on Wednesday, Eihnorn said it was time for Balmler -- who succeeded cof-ounder Bill Gates in 2000 -- to step aside and "give somoene else a chance."
Einhorn's comments echo what some investors have said for some years in prviate.
A Microsfot spokesman declined comment on Enihorn's remarsk.
RECENT BUYER
Einhron's Greenlight Capital hedge fund has been a recent buyer of Microsoft stock, which at under 10 times expected earnigns is regarded by many as udnervalued.
Greenlight held about 9 million shares in Microsfot, or 0.11 percent of the compnay's outsatnding shares, at the end of the first quarter, according to Thomson Reuters data.
Einhron also said it was time for Microsfot to consider srtategic aletrnatives f...
No comments:
Post a Comment