Apple asks judge to deny request to block shareholder vote

David Einhorn of Greenlight Capital Inc. has requested that Apple issue a special class of stock as a way to distribute more of its $120 billion in cash to shareholders. Apple has said it is studying this request.

By Chris O’Brien

Feb. 13, 2013 12 AM PT

Apple filed a motion Wednesday asking a judge to deny a request from a dissident shareholder to block a vote on a measure that would affect the company’s ability to issue a special type of stock.

This month, David Einhorn of Greenlight Capital Inc. went public with a dispute over a proposal included in Apple’s annual shareholder proxy. Shareholders are scheduled to vote on the proxy at the company’s annual meeting Feb. 27.

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Einhorn has requested that Apple issue a special class of stock as a way to distribute more of its $120 billion in cash to shareholders. Apple has said it is studying this request.

However, Proposal No. 2 on the shareholder ballot would change Apple’s bylaws, requiring a shareholder vote on any move to issue such stock. Einhorn sued to block a vote on the proposal, saying Apple had unfairly bundled it with two other shareholder reforms to increase its likelihood of passing.

In its response filed Wednesday, Apple told the judge to let the vote go forward, saying: “The proposed injunction would harm the public interest.”

Apple’s filing comes a day after Chief Executive Tim Cook called the legal dispute a “silly sideshow.” Cook said even if the bylaws weren’t changed, the company would still probably ask shareholders to vote on whether to issue the type of stock Einhorn wants.

A hearing on the injunction is scheduled for next week.

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