This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

EBay Tells Shareholders to Reject Icahn Slate

NEW YORK (The Deal) -- Internet commerce company eBay (EBAY) on Tuesday filed its proxy statement ahead of its May 13 annual meeting, urging shareholders to reject a slate of directors nominated by Carl Icahn and again rejecting Icahn's plan to separate PayPal.

San Jose, Calif.-based eBay, in a letter to shareholders accompanying the filing, repeated its arguments that PayPal's association with the company has accelerated the payment service's growth and provided it with the resources it needs to expand.

"We continue to believe today that PayPal and eBay together is the best path to creating sustainable shareholder value in the future," eBay founder and chairman Pierre Omidyar, CEO John Donahoe and lead independent director Thomas Tierney wrote. "In today's competitive environment, the advantages of PayPal and eBay together are more important than ever."

The filing came a day after Icahn in a television appearance reiterated his criticism of eBay management and its board, calling Donahoe "a nice guy" who "has not done a good job." Icahn also urged shareholders to put him on the board. The investor has also been critical of directors Marc L. Andreessen and Scott Cook, accusing them of staying on the board despite conflicts.

Must Read: Devon Energy Turnaround Spared by Activists

EBay in its letter said that the company, over the past five years, with PayPal has generated a 441% increase in share price, "significantly outpacing" both the Nasdaq and S&P 500. The company said it believes that the rise of mobile computing is pushing a convergence between payments and commerce, saying that eBay, thanks to its PayPal ownership, "is a leader in this evolving competitive environment."

The company criticized what it called Icahn's "aggressive media campaign to attack the management and directors of eBay," noting that the investor has backed away from his initial proposal to spin out PayPal in favor of instead selling a stake in PayPal to the public.

"The bottom line is that Mr. Icahn is wrong about the quality of our board and he's wrong about the best course today for PayPal," the board wrote. "We oppose his unqualified board nominees, and we recommend that shareholders vote against his nonbinding proposal to separate PayPal from eBay."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EBAY $24.42 -0.79%
AAPL $93.75 -1.10%
FB $117.53 0.69%
GOOG $693.00 0.29%
TSLA $240.76 -2.81%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs