In a surprising move, Greenlight Capital has withdrawn its suit against Apple Inc. Greenlight's maverick head David Einhorn sought court intervention to stop the most valuable company in the world's shareholders from voting on a management proposal to prevent the company's ability to issue preferred shares at its discretion.
The withdrawal of the lawsuit had closed what has been the most anticipated and strongest challenge to date as to the management policies of Apple. Einhorn even when to the extent as to actively campaign to fellow shareholders to force company executives to issue preferred shares with a perpetual dividend in order to tap into the billion dollar cash and securities pile the company has accumulated over the years.
Einhorn argued that if the proposal was allowed, it would severely limit the company from issuing future 'pro-investor' securities from the company. A federal court ruling issued a restraining order against Apple in holding the shareholder vote on the company proposal.
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