Activist investor Carl Icahn on Wednesday called on eBay Inc to sell 20 percent of its PayPal payments unit in an initial public offering, a change in tack from his previous call for a complete spinoff. Icahn in January called for eBay to hive off its fast growing PayPal business, arguing the unit is undervalued as part of eBay. In recent weeks, Icahn has sent a series of open letters critical of eBay Chief Executive John Donahoe, the board, and corporate governance at the e-commerce company. In his latest missive to fellow eBay shareholders, he said selling off only part of PayPal would retain the benefits of a stand-alone PayPal while maintaining the efficiencies of having eBay and PayPal together.
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