EBay Ends Bitter Proxy Fight With Carl Icahn

by Christopher Freeburn | April 10, 2014 12:11 pm

EBay Ends Bitter Proxy Fight With Carl Icahn

On Thursday, Carl Icahn issued a statement saying he had reached a deal with eBay (EBAY[1]) to halt a proxy battle over its PayPal online payment unit.

ebay logo 630 300x214 EBay Ends Bitter Proxy Fight With Carl Icahn[2]
Source: Flickr[3]

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.

Carl Icahn had urged EBAY to spin off PayPal[4] 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[5].

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[6], 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%.

Endnotes:
  1. EBAY: http://studio-5.financialcontent.com/investplace/quote?Symbol=EBAY
  2. [Image]: http://investorplace.com/wp-content/uploads/2011/10/ebay-logo-630.jpg
  3. Flickr: http://www.flickr.com/photos/liewcf/
  4. urged EBAY to spin off PayPal: http://investorplace.com/2014/01/carl-icahn-ebay-stock-paypal/#.U0bBT15hOf0
  5. lapses in corporate government and conflicts of interest: http://investorplace.com/2014/02/carl-icahn-blasts-ebay-read-open-letter/#.U0bBSV5hOf0
  6. appeared to have mixed views of the idea: http://investorplace.com/2014/03/carl-icahn-paypal-ebay-stock/#.U0bBRl5hOf0

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