Feeds

iPrefs-seeking shareholder Einhorn drops Apple lawsuit

'Silly sideshow' folds its tent, moves on

The Essential Guide to IT Transformation

David Einhorn and his hedge fund Greenlight Capital have dropped their lawsuit against Apple.

Einhorn had sued to block a vote at Apple's investor meeting, held this Wednesday, that would have forced a shareholder vote on the issuance of higher-dividend preferred shares. Einhorn is promoting the idea of that class of shares, which he dubbed "iPrefs".

"Apple removed the bundled proposal from the shareholder meeting therefore resolving the issue," a Greenlight Capital spokesman told AllThingsD.

Not that Apple had a choice. Last Friday, a New York District Court judge issued an injunction preventing Apple from holding that vote, known as Proposition 2, agreeing with Einhorn that Security and Exchange Commission rules prevented its "bundling" of multiple measures.

Einhorn's iPrefs idea – which lives on, unaffected by Friday's withdrawal of legal action – is intended to pry loose some of Apple's ginormous cash holdings, which were reported to stand at $137.1bn in the company's most recent financial report.

Einhorn's activist-shareholder stance has inspired both plaudits and brickbats. Place Apple CEO Tim Cook firmly in the latter camp, having called the Einhorn suit a "silly sideshow" both at the Goldman Sachs Technology and Internet conference on February 12 and at his company's investors meeting this Wednesday.

Einhorn may now be folding that particular sideshow's tent, but don't expect him to retire his activist act entirely. ®

Build a business case: developing custom apps

More from The Register

next story
ONE EMAIL costs mining company $300 MEEELION
Environmental activist walks free after hoax sent share price over a cliff
Arrr: Freetard-bothering Digital Economy Act tied up, thrown in the hold
Ministry of Fun confirms: Yes, we're busy doing nothing
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
Apple smacked with privacy sueball over Location Services
Class action launched on behalf of 100 million iPhone owners
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.