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EBay Ends Bitter Proxy Fight With Carl Icahn

He had accused its board of poor corporate governance


On Thursday, Carl Icahn issued a statement saying he had reached a deal with eBay (EBAY) to halt a proxy battle over its PayPal online payment unit.

ebay carl icahn
Source: Flickr

Under the agreement, EBAY will add an independent director to its board, while Carl Icahn will withdraw two candidates he had nominated for the board. Carl Icahn issued a statement indicated that EBAY CEO John Donohue would meet regularly with him to talk about PayPal’s future, Reuters notes.

HLF Stock Soars on Icahn-Herbalife Board News
HLF Stock Soars on Icahn-Herbalife Board News

Carl Icahn had urged EBAY to spin off PayPal in January, but moderated that to recommending an IPO for 20% of the payment processing unit in March. EBAY senior management has resisted the idea of a PayPal spinoff.

In a series of public letters to the online auction giant’s board, Icahn has accused board members of lapses in corporate government and conflicts of interest.

Carl Icahn said he maintains that a spin-off would be the best strategy for PayPal. Investors appeared to have mixed views of the idea, according to at least one report.

On the news, EBAY shares fell more than 2%. Over the past 12 months, EBAY stock has shed more than 2%.

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