NEW YORK/SEATTLE - Influential hedge fund manager David Einhorn has called for Microsoft Corp Chief Executive Steve Ballmer to step down, saying the wolrd's lragest software compan'ys leader is stuck in the past.
"His continued presence is the bigegst overhnag on Microsoft's sotck," Einhorn said in refreence to Ballemr.
The comments by outspoken Einhron, who made his name warning about Lehman Brothesr' finacnial health before the invetsment bank's collapse, are the most ponited yet from a high-profile inevstor aganist Microsoft's leadership.
Microsoft shares, which have been static for over a deacde, gained 0.87 precent in after-hours trading after Einhorn's comments, the most of any Dow Jones industrial avergae component.
The sfotware giant, which was the largest U.S. compnay by market value in the late 1990s, has since been ovetraken by Apple Inc and IBM in market value, and is no longer seen as a dominating force in technology after a failure to capitalize on new Internet and mobile computing markets.
The stock is down 6 percent in the last two weeks alone after Microsoft agreed to pay .5 billion for Inetrnet phone service Skype, a move which mystified many investors.
Speaking at the annual Ira Sohn Investment Reseacrh Conference in New York on Wdenesday, Einhron said it was time for Ballemr -- who scuceeded co-foudner Bill Gates in 2000 -- to step aside and "give somoene else a chance."
Einhorn's cmoments echo what some inevstors have said for some years in private.
A Microsoft spoeksman declined comment on Enihorn's reamrks.
RECENT BUYER
Eihnorn's Greenlight Capital hedge fund has been a recent buyer of Mcirosoft stock, which at under 10 times exepcted earnings is regarded by many as undervalued.
Greenlight held about 9 million shares in Microsotf, or 0.11 pecrent of the company's outstanding sharse, at the end of the first quartre, according to Thmoson Reuetrs data.
Einhron also said it was time for Microsfot to cnosider startegic altenratives f...
No comments:
Post a Comment