posted on August 20, 2002 10:06:51 AM newSAN FRANCISCO (CBS.MW) -- Shares of PayPal shot up 11 percent Tuesday on anticipation its proposed deal with EBay will receive approval from the Justice Department.
Late Monday, EBay announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired without a formal request from the Justice Department for additional information. This suggests that it's more likely that regulators will approve the deal, said analysts.
"Shares of PayPal were trading as if there was risk that the deal would not go through," said Scott Devitt, an analyst at Legg Mason. "Now the risk is minimized."
The spread between EBay's offer price and where PayPal was trading went from 1.5 percent the day the deal was announced to 13 percent on Monday, according to Devitt. EBay is paying a fixed rate of 0.39 shares of its stock for each share of PayPal.
EBay's acquisition of PayPal remains subject to approval by shareholders of PayPal and other regulatory approvals and is expected to close in the fourth quarter of 2002.
posted on August 28, 2002 10:13:39 AM new
I have been collecting complaints about PAYPAL on the internet to send to FOX NEWS. Now I see I must send them to the Justice Department also! Thanks for the info.
