30 July 2016
Find out more

EBay urges shareholders to reject Icahn's PayPal spin-off plan

25 March 2014  |  3333 views  |  0 PayPal logo

The eBay board has written to shareholders calling on them to vote against activist investor Carl Icahn's proposal to spin off PayPal.

In January Icahn began making his very public case for PayPal to be hived off from eBay, arguing that the auction site was hampering the growth and competitiveness of its payments subsidiary.

Last week, in the face of aggressive push back from the eBay board, he changed tack and proposed selling off 20% of PayPal in an initial public offering.

However, in a letter to shareholders the eBay board has reiterated its stance ahead of the company's annual meeting on 13 May, urging them to vote against his spin off plan and his bid to have two employees added to the eBay board.

"We have evaluated carefully Mr. Icahn's proposal to spin off PayPal. We do not support it. Mr. Icahn's proposal is not a new idea, and Mr. Icahn himself recently backed away from supporting his own proposal," says the letter.

Over the last five years, notes the firm, PayPal and eBay have generated a 441% increase in share price for investors, significantly outpacing Nasdaq and the S&P.

Says the letter: "Our shareholders and our customers are best served by keeping PayPal and eBay together. No other payments competitor has achieved PayPal's success - because no other competitor has had a commerce platform like eBay.
KeywordsE-COMMERCE

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

PayPal says the time is right for wearable payments

PayPal says the time is right for wearable payments

24 February 2014  |  8724 views  |  0 comments | 24 tweets | 21 linkedin
Apple preparing to move into payments - WSJ

Apple preparing to move into payments - WSJ

27 January 2014  |  11225 views  |  3 comments | 29 tweets | 28 linkedin
EBay rebuffs calls to spin-off PayPal

EBay rebuffs calls to spin-off PayPal

23 January 2014  |  3209 views  |  0 comments | 3 tweets | 3 linkedin
PayPal boss backs bitcoin, but not as a currency

PayPal boss backs bitcoin, but not as a currency

11 December 2013  |  5599 views  |  1 comments | 14 tweets | 12 linkedin
EBay agrees $800m Braintree acquisition

EBay agrees $800m Braintree acquisition

26 September 2013  |  11176 views  |  1 comments | 15 tweets | 11 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.abe-eba.euVisit VocaLink.comFind out more

Who is commenting?

Top topics

Most viewed Most shared
Groupe BPCE agrees to buy FidorGroupe BPCE agrees to buy Fidor
8215 views comments | 36 tweets | 55 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
7111 views comments | 16 tweets | 22 linkedin
hands typing furiouslyManaging Big Data After Brexit
6782 views 0 | 6 tweets | 8 linkedin
Indian digital payments market to hit $500bn by 2020 - GoogleIndian digital payments market to hit $500...
5775 views comments | 24 tweets | 18 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job