“Greenlight Capital Inc. will try to persuade a federal judge to stop Apple Inc. from adopting measures it says limit the iPhone-maker’s ability to offer preferred stock,” Christie Smythe reports for Bloomberg.
“Greenlight, the hedge fund whose founder, David Einhorn, has been urging Apple to share its cash with investors by issuing high-yielding preferred shares, alleged in a lawsuit that the company unfairly lumped a stock restriction with two other corporate governance matters set for a vote by investors on Feb. 27,” Smythe reports. “At a hearing scheduled for today in Manhattan, lawyers for the hedge fund are expected to ask U.S. District Judge Richard Sullivan to block the vote unless Apple allows the provisions to be considered separately.”
Smythe reports, “Einhorn, whose Greenlight claims to hold more than 1.3 million Apple shares, has been asking the Cupertino, California- based iPad maker to issue preferred stock to help shift the value of a $137 billion stockpile of cash to investors. Apple Chief Executive Officer Tim Cook has said the company is considering ways to give more money to shareholders and described Greenlight’s suit as a “silly sideshow” during a Feb. 12 investor conference in San Francisco.”
Read more in the full article here.
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