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



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)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared


A view of Microsoft and Nokia signs in Peltola, Oulu July 16, 2014. Microsoft Corp said on Thursday it would cut up to 18,000 jobs, or about 14 percent of its workforce, as it halves the size of its recent Nokia acquisition and trims down other operations. REUTERS/Markku Ruottinen/Lehtikuva

Opera's Mini browser to be installed on Microsoft phones

Norwegian software maker Opera signed a deal to take over the browser building unit of Microsoft's Nokia mobile phone unit and reported second-quarter earnings above expectations, sending it shares sharply higher.  Full Article 

Reuters Showcase

Silicon Valley Women

Silicon Valley Women

Despite lip service, Silicon Valley venture capital still a man’s world   Full Article 

Cyber Attacks

Cyber Attacks

U.S. government's nuclear watchdog victim of cyber attacks - report  Full Article 

Net Neutrality

Net Neutrality

Online video stars mobilize for U.S. net neutrality  Full Article 

'Heartbleed' Bug

'Heartbleed' Bug

U.S. hospital breach biggest yet to exploit Heartbleed bug - expert  Full Article 

Deal Talk

Deal Talk

Infineon agrees to buy Int'l Rectifier for $3 bln in cash  Full Article 

Reuters India Mobile

Reuters India Mobile

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