Court supports the nomination Einhorn to stop proxy voting Apple

Reasonable to assume that hedge fund manager David Einhorn will not find invited to bash Apple beer side. Earlier this month, Apple CEO Tim Cook described the complaint filed by the hedge fund Greenlight Einhorn as a waste of time and money. Einhorn has since taken his case directly to shareholders with an elaboration of its public reason why Apple should separate some of its $ 137 billion in cash in the form of issuing preferred shares to investors.

Now, U.S. District Judge Richard Sullivan gave its attempt to block a shareholder vote next week on a proposed Proxy Apple would eliminate the ability to issue "blank check" preferred shares without the approval of investors . Einhorn argued that this provision illegally supplied Apple with several other factors to be taken into consideration by investors. The vote was originally scheduled for February 27.

An idea launched by Einhorn was to create what he called iPrefs - a $ 50 stock with a dividend of 4 per cent per annum. During a conference call earlier in the week, he said that investors would be able to negotiate such instruments as something separated from the existing stock of Apple. Apple's current investors would be given "one or more iPrefs toll," said Einhorn.

In a statement released this afternoon, Greenlight Capital has welcomed the decision of the court:

    This is an important victory for all shareholders of Apple and good corporate governance. We are pleased that the court recognized that Agent Apple is not compatible with the rules of the SEC because it provides different questions in Proposition 2. We look forward to evaluating our idea iPref Apple and we encourage other shareholders to encourage Apple to release significant value residing on its balance sheet.

Apple was not immediately available for comment. We will update this post as more information becomes available. [Note: at the end of the day, Apple pulled Proposition 2 and its agent issued a statement. See the updated note at the end of this story for more.]

When he appeared at a Goldman Sachs conference in San Francisco on February 12, Cook dismissed the claims by Apple that Einhorn has a mindset Depression. He said the company made "bold and ambitious" paris products at the same time it has to be financially conservative.

"I do not know how a company with a mindset Depression would have done all these things," said Mr. Cook. "We have a little money, but it is a privilege to be in this position. .. It is an incredible privilege for us to be in a position where we can seriously consider returning additional cash to our shareholders. "

Despite the legal back and forth, he also said that the management team and the board of Apple remained "very active discussions" on how to return more money to investors. Apple did he said, will evaluate all options, including those proposed by Einhorn.

In a letter to shareholders released Greenlight Capital with his trial, the company offered this statement Einhorn:

    We believe that Apple should consider all options to unlock the increased value of its balance sheet for all shareholders. In recent months, we have had an ongoing dialogue with Apple about the possibility of doing so, namely the creation of a new title, a perpetual preferred stock to be distributed free of charge to existing shareholders of Apple, and give a good , sustainable dividend while maintaining the financial resources of Apple to continue its business strategy.

Update, 2:02 pm PT: Added declaration of Greenlight Capital.

Update, 5:27 pm PT: Late today, Apple pulled Proposition 2 and its representative issued the following statement:

    We are disappointed with the court's decision. Proposal No. 2 is part of our efforts to improve corporate governance and serve the best interests of our shareholders. Unfortunately, because of today's decision, the shareholders will not be able to vote on the proposal No. 2 during our annual meeting next week.
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