New York, NY, United States (4E) – Activist investor Carl Icahn is calling for the partial spinoff of PayPal, in a latest move in its battle against eBay Inc. over the future of its payments unit.
Mr. Icahn urged eBay to sell 20 percent of PayPal to the public, while keeping the remaining stake should be kept under the company’s control, according to a notice posted on his website Wednesday.
The billionaire also said before the transaction is finalized the companies could get into a long-term, commercially viable contract that will preserve all synergies.
Mr. Icahn suggested that a 20 percent IPO of PayPal could mean that an independent unit can retain all benefits of an in-house PayPal and could be structured so it will be tax free to shareholders.
A spokeswoman for eBay did not immediately offer a response when requested for a comment. eBay has maintained that keeping PayPal as a full subsidiary is better for the company.