Apple Recap: A Lawsuit, A Reaction, and the iPhone’s Good Showing
The news of a lawsuit against Apple (NASDAQ:AAPL) did not deter its investors from giving the company one of its better recent days as the stock rose 2.98 percent on Thursday to close at $468.25. Perhaps it’s got something to do with the expectation that this development may actually move Apple into some action. In any case, the development of this story over the next few days will prove interesting along with the movement of Apple’s share price. Here is a Cheat Sheet to the top Apple stories from the day:
Apple Has This To Say
Apple released a statement on Thursday afternoon, saying the company’s management and board were currently in active talks about returning cash to its shareholders. The iPhone maker specifically mentioned Greenlight Capital, the David Einhorn fund that filed a lawsuit against the company over its stock behavior earlier in the day. Apple said it would thoroughly evaluate Greenlight’s recommendation to issue some form of preferred stock. It also explained that the proposal in its AGM proxy was designed not to get rid of preferred stock completely, but give shareholders the option to vote on such a move.
“Contrary to Greenlight’s statements, adoption of Proposal #2 would not prevent the issuance of preferred stock,” the statement read. “Currently, Apple’s articles of incorporation provide for the issuance of ‘blank check’ preferred stock by the Board of Directors without shareholder approval. If Proposal #2 is adopted, our shareholders would have the right to approve the issuance of preferred stock…” (Read more)