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NEW YORK/SEATTLE (Reuters) – Influential hedge money trainer king Einhorn has titled for Microsoft Corp Chief Executive Steve Ballmer to travel down, locution the world's maximal software company's leader is stuck in the past.

"His continued proximity is the biggest hang on Microsoft's stock," Einhorn said in meaning to Ballmer.

The comments by communicatory Einhorn, who prefabricated his study warning most Lehman Brothers' financial health before the assets bank's collapse, are the most spinous still from a high-profile investor against Microsoft's leadership.

Microsoft shares, which hit been noise for over a decade, gained 0.87 proportionality in after-hours trading after Einhorn's comments, the most of whatever Dow Jones industrial average component.

The software giant, which was the maximal U.S. consort by mart continuance in the late 1990s, has since been overtaken by Apple Inc and IBM in mart value, and is no individual seen as a high force in technology after a unfortunate to cipher on new Internet and ambulatory technology markets.

The hit is downbound 6 proportionality in the terminal two weeks lonely after Microsoft united to pay $8.5 1000000000 for Internet phone assist Skype, a move which mystified whatever investors.

Speaking at the period Ira Sohn Investment Research Conference in New royalty on Wednesday, Einhorn said it was instance for Ballmer -- who succeeded co-founder Bill enterpriser in 2000 -- to travel divagation and "give someone added a chance."

Einhorn's comments reflexion what whatever investors hit said for whatever eld in private.

A Microsoft spokesman declined comment on Einhorn's remarks.

RECENT BUYER

Einhorn's Greenlight Capital hedge money has been a recent buyer of Microsoft stock, which at low 10 nowadays due earnings is regarded by whatever as undervalued.

Greenlight held most 9 meg shares in Microsoft, or 0.11 proportionality of the company's outstanding shares, at the modify of the prototypal quarter, according to composer Reuters data.

Einhorn also said it was instance for Microsoft to study strategic alternatives for its money-losing online business, which has so farther unsuccessful to win deal from online see leader Google Inc.

The online services unit, which runs the Bing see engine and MSN scheme portal, had a expiration of $726 meg terminal lodge and has now lost $7 1000000000 in quaternary years.

Bing has prefabricated whatever progress, raising its U.S. Internet see mart deal to 14 proportionality from 8 proportionality in the two eld since launch, but has not taken whatever deal from Google, which has held on to its 65 proportionality share, according to investigate concern comScore.

Einhorn declined to comment further.

OLD FOES APPLE, IBM REVIVED

On Tuesday, Microsoft was overtaken by IBM in mart continuance for the prototypal instance in 15 years, chiefly because of Microsoft's noise deal price. Apple roared instance it terminal assemblage to embellish the world's most priceless school company.

(Graphic showing mart continuance of Apple, IBM and Microsoft over time: http://r.reuters.com/jaw69r )

An investor who put $100,000 into Microsoft hit 10 eld past would now hit most $69,000 worth.

Einhorn, the chair of Greenlight Capital, which had $7.8 1000000000 of assets as of Jan 1, prefabricated his study with the prescient call on Lehman's accounting troubles.

In the spring of 2008, Einhorn said Lehman -- and its then-Chief Financial Officer Erin Callan -- had tasteful its possess problems and necessary to improve top to hold a balance artefact peppered with venturous assets.

Einhorn's open speeches on the concern in April and May 2008 -- including digit at the Ira Sohn conference that assemblage -- grazed a nerve with another investors and are widely credited as directive to Callan's feat from the consort a few months before its collapse.

Microsoft shares, which gained 4 cents in normal trading, ended up a boost 12 cents at $24.31 in after-hours activity.

(Reporting by Bill Rigby, Svea Herbst and Edwin Chan; Editing by Steve Orlofsky, Lisa Shumaker and Carol Bishopric)

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