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EBay-PayPal Merger Clears Hurdle

August 20, 2002

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SAN JOSE, Calif. (AP) _ A deadline for the Justice Department to request more information on the proposed merger of online auctioneer eBay and payment processor PayPal has passed with no queries from regulators.

Officials had until Monday to request additional documents.

``The matter is closed,″ said Justice Department spokeswoman Gina Talamona. ``There was no action taken.″

Though the $1.4 billion deal has cleared one hurdle, it still must be approved by PayPal shareholders and other regulators, eBay spokesman Kevin Pursglove said Tuesday.

Officials in Germany and Brazil are looking into the merger. Several states are investigating whether PayPal should be regulated as a bank.

Still, the companies expect the merger to close by the end of the year.

PayPal lets buyers and sellers exchange money through e-mail _ a convenient feature for online traders. Buyers make payments online through credit cards and bank accounts, and PayPal relays the funds to sellers’ accounts.

Shares of PayPal jumped $2.10, or 10 percent, to close at $23.10 in trading Tuesday on the Nasdaq Stock Market and gained another 15 cents in extended trading. EBay lost $1.45, to close at $60.41, on the same exchange.


On the Net:

EBay: http://www.ebay.com

PayPal: http://www.paypal.com

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