PayPal (PYPL.US) is attracting interest for potential acquisitions after its shares fell sharply by 46% over the year (market capitalisation fell to ~$38.4 billion), according to Bloomberg. The San Jose-based company is holding meetings with banks after informal offers from competitors, with one major rival considering a full takeover and others targeting selected assets of the company. Trading was temporarily suspended due to volatility, but after resuming, shares jumped +9%, testing session highs. New CEO Enrique Lores will take the helm on 1 March after Alex Chriss was ousted for poor performance and slowing payment volumes. This is an opportunity to rebuild the digital payments pioneer, which is losing momentum in its battle with fintechs. The negotiations may not result in a deal, but the mere signal of interest is boosting the valuation.
Source: xStation
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