“Apple Inc. is under pressure to return more of its cash hoard to investors after David Einhorn’s Greenlight Capital Inc. persuaded a judge to block a vote on whether to limit creation of preferred shares,” Christie Smythe, Patricia Hurtado and Adam Satariano report for Bloomberg.
“U.S. District Judge Richard Sullivan in Manhattan [on Friday] granted Greenlight’s request to stop a Feb. 27 vote that would require shareholder approval before the company could issue a new class of preferred shares,” Smythe, Hurtado and Satariano report. “Following the ruling, Apple said it would pull the proposal from its shareholder meeting.”
Smythe, Hurtado and Satariano report, “Einhorn has used the lawsuit to drum up support among fellow investors to get Apple to return some of its $137.1 billion in cash and investments back to shareholders. ‘It’s a shame that you have to go through the legal system, but we’re happy that there is a real message being sent to management that they should consider an alternative strategy’ for the cash, said Keith Goddard, president of Capital Advisors Inc., an Apple investor who supported Einhorn’s lawsuit.”
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