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EBay disagrees with Icahn, says better off keeping PayPal

Published on Jan 23, 2014 6:12 AM
 
Investor Carl Icahn speaks at the Wall Street Journal Deals & Deal Makers conference at the New York Stock Exchange on June 27, 2007. EBay Inc on Wednesday said Mr Icahn made a non-binding proposal for the e-commerce company to spin off its PayPal payments business into a separate entity. -- FILE PHOTO: REUTERS

(REUTERS) - EBay Inc on Wednesday said activist investor Carl Icahn made a non-binding proposal for the e-commerce company to spin off its PayPal payments business into a separate entity.

Shares of eBay rose 7.8 per cent to US$58.68 in after hours trading.

But eBay, which bought PayPal for US$1.5 billion (S$1.9 billion) in 2002, said its board concluded that it would be better off keeping PayPal as part of the company.

"Payment is part of commerce, and as part of eBay, PayPal drives commerce innovation in payments at global scale, creating value for consumers, merchants and shareholders," eBay said in a statement.

 
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