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Strategic Issues with Apple

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b) New Strategic Issues and circumstances – events taking place in February and March 2013
1. Press Release on Greenlight’s Opposition to Apple’s Proxy – February 7, 2013
Greenlight Capital, Inc., an investment management firm and shareholder since 2010, on February 7 announced that it is urging fellow shareholders of Apple to oppose the company’s attempt to amend its corporate charter and vote against Proposal 2 in Apple’s proxy, which eliminate preferred stock from Apple’s charter at the upcoming Annual Meeting of Shareholders on February 27, 2013. (New York – February 7, 2013) (https://www.greenlightcapital.com/904950.pdf)

The February 8, 2013 Los Angeles Times announced that Apple Inc is considering boosting dividends or buying back more stock to appease investors who experienced a sharp drop in the stock price. The company also said that it would consider Greenlight’s proposal to issue some form of preferred stocks. (Apple weighs boost in dividend; The company also is considering a stock buyback to appease shareholders.Los Angeles Times, February 8, 2013 Friday, BUSINESS; Business Desk; Part B; Pg. 1, 617 words, Chris O'Brien (http://www.lexisnexis.com/hottopics/lnacademic/?)

The news that such plan were under consideration boosted Apples’ stock, which closed on February 11 at $479.93, up $26.31 compared to $453.62 on February 1, 2013.
Greenlight’s latest proposal on February 21 was for Apple to issue a new kind of preferred stock called “iPrefs”, and on February 22 Greenlight won the court ruling against Apple.
The February 27th Annual Shareholder’s Meeting was clear that Apple investors are still very supposrtive of the company’s executives - Cook won a 99.1% approval rating - but they are displeased with its recent stock market

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