Apple Recap: Legal Response, Dividend Date, iPhone Battles
After being in the green for most of the day, Apple (NASDAQ:AAPL) closed 0.09 percent down at $466.59 on Thursday as the limelight stayed on the company’s capital allocation practices. Here are the top stories that moved the stock on the day:
Apple Files Response
David Einhorn told the Apple top management that getting shareholder vote would be an unnecessary roadblock to issuing preferred stock, the company said in a court filing on Wednesday. Apple was responding to a lawsuit filed by Einhorn’s Greenlight Capital fund against it in the U.S. District Court in Manhattan, hoping to block a February 27 shareholders’ vote on a proxy proposal. Einhorn wants Apple to issue perpetual preferred stock with a 4 percent dividend to existing shareholders.
Apple said in its response that while it was not opposed to issuing preferred stock, it wanted to ensure that shareholders had a say in the matter. Einhorn “viewed requiring shareholder approval for his … proposal as a ‘roadblock that was not needed’,” Apple chief financial officer Peter Oppenheimer said in the filing. “We told Mr. Einhorn that Apple was considering his proposal, but that the Board would not issue his proposed perpetual preferred shares without shareholder approval,” Oppenheimer added… (Read more)
Gift For Investors
With its capital allocation practices squarely in the limelight, Apple is set to pay out its third dividend sum to shareholders on Friday. The company is scheduled to distribute about $2.5 billion at $2.65 per share across its 939 million outstanding shares. Shareholders on record as of February 11 will receive payment. While Apple did not have a dividend system in place for more than 17 years, it initiated a $45-billion worth plan last year under chief executive Tim Cook while its stock hovered around $550 per share. Apple’s share price broke the $700-mark in September, but has since fallen fairly rapidly and consistently over the last few months… (Read more)
Fighting It Out
Apple may eventually have to go down the settlement route, but for the moment, the company is choosing to fight for the right to keep using the iPhone name in Brazil. The California company is challenging a ruling made by the company’s trademark authority, Brazilian Institute for Industrial Property, on Wednesday.
Apple lost the right to the trademark in the country on Wednesday after regulators ruled it belonged solely to IGB Eletrônica SA, a Brazilian electronics maker. Gradiente will now need to prove in over the next 60 days that it made use of the trademark between January 2008 and January 2013 in order to keep its trademark rights… (Read more)
Don’t Miss: Apple Will Fight For the iPhone.