David Einhorn Apple: Well, it seems that the drama between David Einhorn’s Greenlight Capital and Apple Inc. (NASDAQ:AAPL) has come to a close for the time being. A couple weeks back, we posted this article: Einhorn to Address Apple Inc. (AAPL) Shareholders on Conference Call. In this piece was the following information:
“Einhorn’s $8 billion Greenlight Capital is seeking an injunction to block a February 27 shareholders’ vote on “Proposal 2” in Apple’s proxy statement, which would abolish a system for issuing preferred stock at its discretion.”
Apple is actually the smart money’s second favorite publicly traded company (see why it’s important to pay attention to hedge fund activity).
After the shareholder meeting came to an end, we posted another article with this information:
“What about discussions surrounding David Einhorn of Greenlight Capital and his “Prop 2” agenda. Since a judge ruled in favor of Einhorn, the Cupertino-based company decided to avoid this proposal for the time being. In short, Prop 2 “would have revoked the ability of Apple’s board members to issue preferred stock. Instead, that power would be put in the hands of shareholders.”
Now, according to AllThingsD.com, Einhorn has dropped his lawsuit against the company.
Here is what the article has to say:
“Einhorn’s Greenlight Capital on Friday withdrew the suit it brought against Apple over a proxy proposal that would have allowed shareholders to vote on eliminating preferred stock from the company charter. Last week, Apple yanked that proposal from its shareholder meeting, after a federal judge ruled it had been “impermissibly bundled” with other matters requiring shareholder consideration, and issued an injunction preliminarily blocking a vote on it.”
With all this in mind, it makes you wonder what the entire point of the lawsuit really was. While there are not too many details out there right now, here is what a Greenlight Capital spokesperson had to say (as published on AllThingsD.com)
“Apple removed the bundled proposal from the shareholder meeting, therefore resolving the issue.”
Maybe Apple Inc. (NASDAQ:AAPL) CEO Tim Cook was right after all. Maybe this was nothing more than a “silly sideshow.”
What are your thoughts on the decision by Einhorn’s Greenlight Capital to drop its Apple Inc. (NASDAQ:AAPL) lawsuit? Share your opinion in the comment section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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