PayPal’s board reportedly views a US$53 billion takeover proposal from Stripe and Advent International as falling short of the company’s potential value, according to Reuters.
PayPal has yet to issue a formal response to the US$60.50-per-share offer.
The board is expected to hold further meetings as it assesses the proposal and whether competing offers could emerge.
The bid would give Stripe and Advent equal stakes in PayPal while keeping the payments company together under joint ownership.
The consortium reportedly remains interested in securing a deal despite PayPal’s reservations.
Block was involved when the group first approached PayPal in April but withdrew before Stripe and Advent submitted the latest proposal.
PayPal’s directors are weighing the offer against the value the company could create through its turnaround strategy.
They are also considering how long a transaction could take, whether the funding is sufficiently certain and what regulatory obstacles may arise.
JPMorgan and Morgan Stanley have provided about US$50 billion in financing and are also advising the consortium.
Stripe and Advent would provide US$17 billion in equity.
The bidders have considered possible measures to address competition concerns.
One option could involve transferring PayPal’s Braintree business or other assets to Advent, which may combine them with payments investments including Nuvei.
PayPal, Stripe, Advent, JPMorgan and Morgan Stanley declined to comment. Block did not immediately respond to a request for comment.
Featured image: Edited by Fintech News Singapore, based on image by mockup.std via Magnific
