David Einhorn cash case against Apple Inc rests on unusual legal tactic
amend Apple's articles of incorporation in three ways: by providing for majority voting for directors, establishing a par value for Apple stock and eliminating its ability to issue preferred stock.
Einhorn is represented by law firm Akin Gump Strauss Hauer & Feld, Greenlight's long-time outside counsel. No lawyer for Apple is yet listed on the court docket and a representative declined to say who would represent Apple in the case.
On Friday, the California Public Employees Retirement System, the biggest U.S. public pension fund and owner of 2.7 million Apple shares, and influential proxy voting firm ISS Proxy Advisory Services both urged investors to vote in favor of the shareholder proposal in question.
"All shareholders should have a vote," Anne Simpson, CalPERS Senior Portfolio Manager and Director for Corporate Governance said on CNBC. "We don't want the board cutting a deal on the side with a hedge fund out of fear of a lawsuit that will cancel the annual meeting.
"This is a big issue that needs to be thought through carefully and we want the board to come to all shareholders and give a chance to have their voice heard."
ISS, which issues recommendations on how shareholders should vote on proxy proposals, generally believes the "bundling" of proposals was not in the best interest of shareholders, but supported the elimination of "blank check" preferred shares due to their potential to be misused as a takeover defense.
"Though many investors have viewed Apple's cash holdings as excessive and wanted to see more of it returned to
