PayPal’s directors reportedly deem Stripe and Advent’s $60.50 cash offer insufficient, leaving shares at $56 amid mixed valuations.
PayPal’s board has privately dismissed a $60.50 per share cash bid from Stripe and Advent International as inadequate, according to reports. The offer valued the company at over $53 billion, a 28% premium to its pre-bid price but below the board’s perceived worth.
Shares closed at $55.52 after a 17% jump on July 15, when the bid was revealed. Analysts, however, maintain an average price target of $53, below both the offer and current trading levels. The board’s stance suggests it may seek a higher bid rather than engage in negotiations.
The bid included $50 billion in committed financing, but reports indicate the bidders could raise their offer. PayPal has not publicly responded to the proposal.