eBay rejects Icahn proposal of PayPal spin off

E-commerce

by CBR Staff Writer| 23 January 2014

Activist investor also wants two of his employees to join eBay's board.

Activist investor Carl Icahn is pushing eBay to spinoff its payments unit PayPal.

He proposed turning PayPal into its own company after acquiring a 0.8% stake in its parent firm, eBay, as well as recommending that two of his own employees join eBay's board.

EBay said in a statement that Icahn's board nominations will be passed on to the board's corporate governance and nominating committee, which will consider them in the ordinary course of business.

"Regarding Mr. Icahn's separation proposal, eBay's board of directors routinely assesses the company's strategic direction and has explored in depth a spinoff or separation of PayPal," the e-Commerce major added.

"eBay's board of directors has concluded that the company and its shareholders are best served by the current strategic direction of the company and does not believe that breaking up the company is the best way to maximise shareholder value.

"PayPal is able to leverage the company's technology capabilities, commerce platforms and relationships with retailers, brands and large merchants worldwide."

The payments business reported a 19% rise in revenues during the fourth quarter to $1.8bn, with 143 million accounts by the end of 2013, a 16% rise from 2012's figures.

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