EBay founder rejects Icahn's call for PayPal spinoff

Thu Feb 27, 2014 3:24pm EST

An Ebay logo is displayed on a monitor in this photo illustration in Encinitas, California, April 16, 2013. Ebay will report their earnings on Wednesday. REUTERS/Mike Blake

An Ebay logo is displayed on a monitor in this photo illustration in Encinitas, California, April 16, 2013. Ebay will report their earnings on Wednesday.

Credit: Reuters/Mike Blake

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(Reuters) - EBay Inc founder and Chairman Pierre Omidyar rejected investor Carl Icahn's call to separate the company's fast-growing PayPal payments unit, saying the businesses were better off together.

Omidyar, who is the largest shareholder in eBay with a stake of 8.37 percent, said separating PayPal from eBay was not a new idea and the board had evaluated the option but decided to keep the businesses together.

Icahn, who disclosed a 2.15 percent stake in the e-commerce company last week, had also accused two long-time eBay board members, Marc Andreessen and Scott Cook, of having business interests that directly competed with eBay.

"Instead of having an honest discussion about a reasonable question, Mr. Icahn has chosen to attack the integrity of two highly respected and qualified board members, Scott Cook and Marc Andreessen," Omidyar said in a statement.

(Reporting by Supantha Mukherjee in Bangalore; Editing by Kirti Pandey)

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