Digest: Imax to court; iPhone marks milestone
EmptyCatalyst takes Imax to court
Turning up the heat on Imax Corp., private-equity manager Catalyst Fund said Monday that it is going to court to resolve recent differences with the giant-screen exhibitor over the accuracy of its financial accounting. Toronto-based Catalyst, a shareholder with $67 million in Imax notes, said it is seeking financial compensation in the Ontario Superior Court under so-called investor-oppression remedy provisions of the Canada Business Corporations Act. The first hearing in the legal action is set for Thursday. The move comes as Imax held its annual general meeting Monday in New York. That meeting follows a restatement by Imax of faulty financial results for fiscal 2002 through 2005 in July (HR 7/10). Imax shares fell 3.1% on Monday to $4.32.
iPhone mark fuels Apple
Apple shares rose 3.8% on Monday to $136.71 after announcing that it has sold its 1 millionth iPhone ahead of its end-of-September goal, reassuring investors who had worried that last week's price cut signaled weak demand. Apple shares fell more than 9% last week following Wednesday's price cut from $599 to $399. Pacific Crest analyst Andy Hargreaves said Apple's ability to reach its target early was partly related to the price cut. "It is good news. The more phones they're able to get into people's hands, the more market share and the broader their user base," he said. "One million iPhones in 74 days -- it took almost two years to achieve this milestone with iPod," Apple CEO Steve Jobs said. Apple was the second-biggest gainer Monday on The Hollywood Reporter's Showbiz 50 stock index.