ASMI keeps option to issue preference shares

* Foundation keeps option to issue prefs in future

* Request from activist shareholders to remove item denied

* Activist shareholders will look into legality of vote

AMSTERDAM, May 14 (Reuters) - ASM International (ASMI.AS) kept an option on Thursday to issue preference shares to a management-allied foundation and ignored activist shareholders' requests to remove the item from the shareholders' meeting.

Shareholders in the Dutch semiconductor equipment maker approved the cancellation of preference shares, which were issued to a management-allied foundation of the midcap company, which makes equipment used for the processing, assembly and packaging of semiconductors.

The shares were used as a protection for ASMI (ASMI.O) management, which has been in a dispute with some of its main shareholders for years, triggered by underperformance at its packaging and assembly business.

Activist shareholders Hermes and Fursa, which together own at least 10 percent of ASMI shares, have been trying to oust ASMI's Chief Executive Chuck del Prado, son of founder Arthur del Prado, but the company has stood behind him.

On Wednesday the Dutch enterprise court in Amsterdam banned the foundation, which owns 35.5 percent of ASMI shares, from the vote on the proposal to give management an option to again issue preference shares to the foundation.

Hermes and Fursa said the proposal was violating corporate governance rules but a request to get the item removed from the shareholders' meeting agenda was denied.

Jurjen Lemstra, a lawyer representing Hermes and Fursa said he would investigate the legality of the vote and whether he would go to court again.

The court also told the parties on Wednesday to come to an agreement over the dismissal of CEO Del Prado by June 5.