Stockholders Challenge PayPal Merger Deal

- WILMINGTON, Del. (07/12/02) -- Shareholdershave filed suit to block the proposed $1.4 billion stock-swapmerger of person-to-person payment service provider PayPal withonline auctioneer eBay. In separate suits filed in DelawareChancery Court shareholders claim the tax-free swap of 0.39 eBayshares for each PayPal share, an 82% representing an 82% premiumover PayPal's initial public offering six months ago, is inadequateand unfair. The lawsuits also charge that eBay controls PayPalbecause about 60% of PayPal's business comes from eBay.