Corporate Finance

EBay urges shareholders to reject Icahn's board nominees

eBay to reject Icahn's nominees: Sorkin

EBay plans to ask its shareholders to reject a slate of board nominees proposed by shareholder activist Carl Icahn, raising the stakes in the billionaire's public battle over the online auction giant's corporate governance.

Last month, Icahn nominated two of his employees to eBay's board, which he has accused of putting its interests ahead of the company. On Monday, eBay released a preliminary proxy statement urging shareholders to reject Icahn's nominees.

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In a new salvo, Icahn said that CEO John Donahoe, by selling Skype prematurely, had cost shareholders more than $4 billion. Icahn insists that eBay spin off its lucrative PayPal platform—an idea dismissed the company has dismissed.

"PayPal is a great company, but it is going to war against strong adversaries such as Google, Apple, Visa, etc," the billionaire wrote in an open letter on Monday.

"To win a war, you need to have great generals that have proven their competence and loyalty. Unfortunately, it is obvious to us that this is lacking at eBay and PayPal. PayPal must be separated NOW so that great management can be attracted – management that can make the right decision and know when to sell at the right time, not the worst time," he added.

Icahn owns about 2 percent of eBay's stock.