Cooperman backs Icahn on eBay/PayPal

Leon Cooperman tells CNBC he backs fellow eBay (EBAY -1%) shareholder Carl Icahn's call for a PayPal spinoff. Cooperman's Omega Advisors owned 855K eBay shares (less than a .1% stake) at the end of Q4.

Meanwhile, Icahn (2%+ stake) has fired a fresh broadside at eBay CEO John Donahoe over his handling of the Skype sale (previous), declaring his "inexcusable incompetence" cost shareholders over $4B.

The letter comes shortly after eBay (as expected) rejected Icahn's board nominees. Both Icahn and Donahoe claim to have strong shareholder support for their PayPal stances.

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Comments (2)
  • Bosco_pcs
    , contributor
    Comments (89) | Send Message
    Not exactly since a partial spinout a la $EMC/$VMW is very different from a complete spinoff. Mr Icahn is taking the route of Loeb's $YHOO pre-Meyer. The problem is that $YHOO needed a major reset at that time but $EBAY? The corporate fight could be a huge distraction. Instead, $EBAY should follow the $EMC route to take PayPal public but retain a majority owner. Then everyone will get a piece of action without making sacrificing management focus
    10 Mar 2014, 01:09 PM Reply Like
  • Eric Jhonsa
    , contributor
    Comments (1276) | Send Message
    Agree. An EMC/VMware-type move is the approach I'd take.
    10 Mar 2014, 01:12 PM Reply Like
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