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EBay, Activist Investors Elliott Management And Starboard Near Settlement Deal

eBay Inc. (EBAY) and activist investors Elliott Management Corp. and Starboard Value LP. are nearing a settlement deal that would give the activists board seats and could open the door to the company breaking itself up, according to wall street journal reported citing people familiar with the matter.

The three parties are discussing a deal in which Elliott and Starboard would receive multiple board seats. The company would also agree to perform an operational review focused on improving profitability and a full-company strategic review — which is expected to involve considering a range of potential sales or spin offs of units and a sale of the core company, the report said.

A deal isn't guaranteed — the activists and the company are still working through some issues that could cause the talks to fall apart. If a deal isn't reached, Elliott and Starboard have until March 1 to seek board seats through a proxy fight, though companies in active discussions with investors sometimes agree to extend the deadline to allow more time for negotiation.

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