March 25 EBay Inc urged its
shareholders to vote against activist investor Carl Icahn's
proposal to spin off the e-commerce company's PayPal payments
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
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
"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)