bid to purchase all the outstanding shares of its Korean subsidiary has apparently failed.
The online auction company announced late Thursday that shareholders owning about 12% of the shares of South Korea's
Internet Auction Company
(IAC) had responded to eBay's tender offer. That raises eBay's stake in the company from slightly more than 50% to about 62%, but falls far short of its goal.
The offer for the outstanding shares of IAC expired on Wednesday. eBay said in a statement that it does not plan to make another tender offer.
eBay representatives did not return calls seeking comment.
eBay offered about $382 million, or nearly $60 a share, for the 6.4 million shares of IAC stock it didn't already own. But some IAC shareholders reportedly were unhappy with the amount eBay was willing to pay for their shares. IAC's stock closed Friday on the Kosdaq Stock Market at about $55.61 a share.
Acquiring the 1.6 million shares from investors who accepted eBay's tender offer will cost the company about $92 million. The company has said that the acquisition will not affect its earnings guidance for the fourth quarter or 2004.
The failure of the tender offer is the second major setback for eBay in Asia. Last year, the company shuttered its Japanese auction site, which was being trounced by the one operated by rival Yahoo! Japan.
Since then, eBay has
expanded its Asian presence outside Japan, moving into the Taiwanese and Chinese markets.
eBay shares closed up 29 cents, or 0.5%, to $57.68.