Icahn, eBay trade barbs as feud over governance escalates

NEW YORK Thu Feb 27, 2014 2:41am IST

Billionaire activist-investor Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New York February 11, 2014. REUTERS/Brendan McDermid

Billionaire activist-investor Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New York February 11, 2014.

Credit: Reuters/Brendan McDermid

Related Topics

Stocks

   

NEW YORK (Reuters) - Billionaire investor Carl Icahn and eBay Inc (EBAY.O) took their war of words up a notch on Wednesday.

Icahn, who last month called for eBay to sell off its fast-growing PayPal payments business, called corporate governance at the e-commerce giant "dysfunctional" in his second letter to eBay shareholders this week.

The activist investor, who has a 2.15 percent stake in eBay, promised to lay out a detailed case for spinning off fast-growing PayPal in coming weeks. He sent an open letter to eBay shareholders this week accusing two company directors of conflicts of interest.

"We believe corporate governance at eBay is dysfunctional. Let's end this charade," Icahn said in his latest letter to eBay shareholders. He urged shareholders to vote for his slate of directors and in favor of his spinoff proposal at eBay's annual shareholder meeting this year.

EBay responded with a statement headlined "Stick to the facts, Carl" and accused him of deliberately spreading claims that are "dead wrong."

Icahn said on Monday that two longtime board members, Marc Andreessen and Scott Cook, had business interests that directly competed with eBay.

"Carl Icahn doesn't let the truth get in the way of a good story," eBay said in response to Icahn's latest letter.

Icahn, chairman of Icahn Enterprises L.P. (IEP.O), is known for taking large stakes in companies and pushing for management change. He was not immediately available for comment.

EBay shares were up 2.6 percent to $57.60 in afternoon trading.

(Reporting by Sam Forgione and Phil Wahba; Editing by Jonathan Oatis and Amanda Kwan)

FILED UNDER:
  • Most Popular
  • Most Shared

GOOGLE

Tech Showcase

Advanced Software

Advanced Software

Computer spying malware uncovered with 'stealth' features - Symantec.  Full Article 

Apple Settlement

Apple Settlement

Apple $450 mln e-book settlement gets final court approval.  Full Article 

Samsung Complain

Samsung Complain

Samsung files ITC complaint to block Nvidia chips from U.S. - Bloomberg.  Full Article 

Jeep SUVs

Jeep SUVs

Chrysler says it will speed up recall repairs for Jeep SUVs.  Full Article 

Internet Rules

Internet Rules

Any new U.S. Internet rules must withstand lawsuits - FCC chief.  Full Article 

Amazon's Plan

Amazon's Plan

Amazon plans ad-supported video streaming service - NY post.  Full Article 

Cellphone Upgrade

Cellphone Upgrade

Mobile phones to get handy upgrade.  Video 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage