Greenlight Capital’s David Einhorn has dropped his suit against Apple which was filed to prevent it from eliminating preferred shares, reports Bloomberg. This follows the removal of the related proxy proposal that would have been voted on in this week’s shareholders meeting.
Einhorn, who holds over a million Apple shares, had moved to block Apple eliminating preferred stock from the company’s bylaws. Einhorn had stated that the “move to amend the company’s charter would unnecessarily limit the technology giant’s ability to create value for shareholders.”
Apple removed that item from voting in the meeting after U.S. District Judge Richard Sullivan granted a motion to block the vote on ‘Proposal #2’, which would have eliminated preferred stock.
When the suit was made public, Apple came out with a statement about the elimination of preferred stock, saying that it would ‘thoroughly evaluate’ Greenlight’s proposal of an ‘iPref’ preferred stock. The stock would have a face value of $50 and would pay of a $2 per-share dividend annually.
Apple CEO Tim Cook had referred to the suit as ‘a silly sideshow’ and ‘a distraction’.
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