Apple Inc. said it would pull a contested proposal from its shareholder meeting next Wednesday, after a federal judge granted a bid by Greenlight Capital Inc. to block a vote on the measure.
Greenlight founder David Einhorn had opposed Apple's proposal, which relates to the company's ability to issue preferred shares, and had sued to stop it on the grounds that the proposal was incorrectly bundled with other items. Mr. Einhorn wants the vote to act as a referendum on the $137 billion in cash Apple is holding.
Friday's ruling by the federal judge gave Mr. Einhorn a victory in his procedural fight with Apple. But more broadly, it draws attention and scrutiny to his ultimate plan to coerce Apple to deliver more of its cash to shareholders.
Following Mr. Einhorn's court victory, Apple late Friday said in a statement that the company was "disappointed" with the ruling and described the proxy proposal as "part of our efforts to further enhance corporate governance."
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