EBay, Icahn settle proxy fight

Print
Email
|

Associated Press

Posted on April 10, 2014 at 7:01 AM

Updated Thursday, Apr 10 at 7:06 AM

SAN JOSE, Calif. (AP) — Carl Icahn is backing down from his push to remake eBay, settling an acrimonious dispute just ahead of what promised to be an awkward annual shareholder's meeting.

The company has been fighting off a push from the activist investor to spin off PayPal, eBay's mobile payment business.

Under a deal announced Thursday, Icahn is dropping the PayPal strategy and withdrawing his proposal to put two nominees on the board.

In turn, eBay will make David Dorman an independent director, the 10th of the 12-member board.

Icahn still believes eBay should be spun off and says he'll seek confidential talks with the company, whose leadership Icahn has labeled as "either incompetent or negligent."

Shares of eBay Inc., based in San Jose, Calif., fell more than 2 percent before the opening bell.

Print
Email
|