Greenlight Capital wants Apple to unbundle a proposal from two others that will allegedly eliminate preferred stock from Apple’s charter. Apple's CEO Tim Cook called the suit a "silly sideshow".
In the response, filed in the U.S. District Court for the Southern District of New York Wednesday, Apple said the proxy proposal does not improperly bundle several provisions together, as Greenlight alleges. The filing states that bundling only occurs when "discrete, material proposals are combined in a manner that puts shareholders to an unfair choice." Apple also attacked Mr. Einhorn's motives for bringing the suit, saying the firm aims to "induce Apple to issue a novel form of perpetual preferred stock that plaintiffs believe would benefit them substantially." Mr. Einhorn proposed the idea to the company as he and other shareholders have becoming increasingly eager for the company to return more of its growing $137 billion cash hoard to shareholders.
Notably another suit was filed against Apple today by investor Brian Gralnick, a shareholder since 2007. Gralnick also attacks the bundled proposals, raises concerns on the "say-on-pay" proposal, and requests information on how Apple's restricted stock units are determined.