EBay asks shareholders to veto Icahn's PayPal spin-off proposal

Tue Mar 25, 2014 7:11pm 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/Files

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/Files

Related Topics

Stocks

   

(Reuters) - EBay Inc (EBAY.O) urged its shareholders to vote against activist investor Carl Icahn's proposal to spin off the e-commerce company's PayPal payments unit.

Last week, Icahn asked eBay to sell 20 percent of the PayPal payments unit in an initial public offering, a change in tack from his previous call for a complete spin off.

"Our shareholders and our customers are best served by keeping PayPal and eBay together," eBay's board said in a letter to shareholders.

Icahn has said selling off only part of PayPal would retain the benefits of a stand-alone PayPal while maintaining the efficiencies of having eBay and the payments unit together.

EBay reiterated its stance that the company and PayPal were reliant on each other for growth, especially in "today's competitive environment."

"Our commerce and payments businesses reinforce and support each other. Taking them apart would destroy value by reducing their considerable synergies, which cannot be easily replaced by arm's length commercial agreements," the company said.

Shares of eBay were up 0.4 percent at $56.76 in early trading on the Nasdaq.

(Reporting by Soham Chatterjee; Editing by Savio D'Souza)

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

  • Most Popular
  • Most Shared

AMAZON

TECH SHOWCASE

Rising Market Value

Rising Market Value

Facebook goes express to mega-cap status  Full Article 

Right to be Forgotten

Right to be Forgotten

Google under fire from regulators over response to EU privacy ruling.  Full Article 

Record Smartphone Sales

Record Sales

LG Electronics flags further mobile improvement after Q2 profit jump.  Full Article 

Smartwatch

Smartwatch

Swatch Group denies working with Apple on smartwatch.  Full Article 

Strong Results

Strong Results

Nokia's fortunes brighten on heavy network spending.  Full Article 

Battle of Giants

Battle of Giants

In China, Apple's focus pays off while Samsung feels squeeze.  Full Article 

Anonymity Services

Anonymity Services

Flaws could expose users of privacy-protecting software, researchers say.  Full Article 

Biggest Chipmaker

Biggest Chipmaker

China regulator determines Qualcomm has monopoly - state-run newspaper.  Full Article 

Reuters India Mobile

Reuters India Mobile

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