Shares of eBay surge as Elliott Management reveals $1.4 billion stake, recommends portfolio review

Shares of eBay surge as Elliott Management reveals $1.4 billion stake, recommends portfolio review

22nd January 20190Byadmin

Activist hedge fund Elliott Management announced a $1.4 billion stake in eBay in a letter to the e-commerce company’s board on Tuesday.

Elliott’s stake, which represents more than 4 percent of eBay’s shares, comes with an extensive letter of recommendations for the company’s future. The fund’s “Enhance eBay Plan” suggests the company spin off StubHub as well was eBay’s “portfolio of Classifieds properties,” as Elliott said the assets “are worth meaningfully more than the value currently being ascribed to them as part of eBay.”

Shares of eBay surged 9.5 percent in trading from Friday’s close of $31 a share.

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