Einhorn Bites Apple, but Not Too Hard
courtesy of AppleA federal court in New York ruled late today that David Einhorn’s Greenlight Capital has clearly demonstrated its case against a plan from Apple Inc. (NASDAQ: AAPL) that would have put to a shareholder vote the company’s proposal…
A federal court in New York ruled late today that David Einhorn’s Greenlight Capital has clearly demonstrated its case against a plan from Apple Inc. (NASDAQ: AAPL) that would have put to a shareholder vote the company’s proposal to eliminate preferred stock. The court granted a temporary injunction to Einhorn and Greenlight on this issue, but rejected a requested injunction that would have allowed Einhorn to add a proposal giving shareholders an advisory vote on executive pay.
Einhorn has been pushing a proposal that Apple issue perpetual preferred stock to existing shareholders which would pay a dividend while still allowing the company to retain a substantial cash hoard to use for corporate purposes. Apple had included in its proxy statement a proposal to eliminate the company’s preferred stock.
Apple’s shareholders’ meeting is scheduled for this coming Wednesday. That’s still several days away and we’d be willing to be that this is not the last word on this subject, either from Einhorn or Apple.
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
