PayPal shares fell as much as 16% in premarket trading on Friday, August 28, after Bloomberg reported that Stripe and Advent International had abandoned their pursuit of the payments company.
PayPal Holdings Inc. (NASDAQ: PYPL) was the target of an offer exceeding USD 50 billion, according to people familiar with the matter, as cited by Bloomberg. Representatives for PayPal, Stripe and Advent declined to comment publicly.
Reuters reported in July that Stripe and private-equity firm Advent had offered USD 60.50 per share, valuing PayPal at more than USD 53 billion. The proposed transaction was backed by about USD 50 billion in committed bank financing, according to Reuters.
PayPal stock traded at around USD 52.50 in Friday’s pre-market session after the takeover report, reversing part of a rally driven by expectations that a transaction could materialise. The shares had gained more than 42% during the quarter.
Bloomberg previously reported that the consortium was no longer pursuing the acquisition after PayPal deemed the initial offer inadequate, and discussions over a higher price failed to produce an agreement.
Read: Wall Street Rises as PayPal Jumps on $53bn Takeover Bid
The withdrawal ends, for now, a proposed transaction that would have ranked among the largest leveraged buyouts on record. People familiar with the matter told Bloomberg that the situation remained fluid and the prospective buyers could return at a later stage.
